Correlation Analysis Between Open Text and EURONEXT BEL-20

This module allows you to analyze existing cross correlation between Open Text Corporation and EURONEXT BEL-20. You can compare the effects of market volatilities on Open Text and EURONEXT BEL-20 and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Open Text with a short position of EURONEXT BEL-20. See also your portfolio center. Please also check ongoing floating volatility patterns of Open Text and EURONEXT BEL-20.
Horizon     30 Days    Login   to change
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Comparative Performance

 Predicted Return Density 
      Returns 

Open Text Corp.  vs.  EURONEXT BEL-20

 Performance (%) 
      Timeline 

Pair Volatility

Given the investment horizon of 30 days, Open Text Corporation is expected to generate 0.94 times more return on investment than EURONEXT BEL-20. However, Open Text Corporation is 1.07 times less risky than EURONEXT BEL-20. It trades about 0.18 of its potential returns per unit of risk. EURONEXT BEL-20 is currently generating about 0.16 per unit of risk. If you would invest  3,840  in Open Text Corporation on October 22, 2019 and sell it today you would earn a total of  481.00  from holding Open Text Corporation or generate 12.53% return on investment over 30 days.

Pair Corralation between Open Text and EURONEXT BEL-20

0.76
Time Period3 Months [change]
DirectionPositive 
StrengthSignificant
Accuracy98.44%
ValuesDaily Returns

Diversification Opportunities for Open Text and EURONEXT BEL-20

Open Text Corp. diversification synergy

Poor diversification

Overlapping area represents the amount of risk that can be diversified away by holding Open Text Corp. and EURONEXT BEL-20 in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on EURONEXT BEL-20 and Open Text is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Open Text Corporation are associated (or correlated) with EURONEXT BEL-20. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EURONEXT BEL-20 has no effect on the direction of Open Text i.e. Open Text and EURONEXT BEL-20 go up and down completely randomly.
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See also your portfolio center. Please also try Aroon Oscillator module to analyze current equity momentum using aroon oscillator and other momentum ratios.


 
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