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This module allows you to analyze existing cross correlation between AEX Amsterdam and EURONEXT BEL-20. You can compare the effects of market volatilities on AEX Amsterdam 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 AEX Amsterdam with a short position of EURONEXT BEL-20. See also your portfolio center. Please also check ongoing floating volatility patterns of AEX Amsterdam and EURONEXT BEL-20.
|Horizon||30 Days Login to change|
Predicted Return Density
AEX Amsterdam vs. EURONEXT BEL-20
Given the investment horizon of 30 days, AEX Amsterdam is expected to generate 0.91 times more return on investment than EURONEXT BEL-20. However, AEX Amsterdam is 1.1 times less risky than EURONEXT BEL-20. It trades about 0.23 of its potential returns per unit of risk. EURONEXT BEL-20 is currently generating about 0.17 per unit of risk. If you would invest 49,599 in AEX Amsterdam on January 18, 2019 and sell it today you would earn a total of 4,363 from holding AEX Amsterdam or generate 8.8% return on investment over 30 days.
Pair Corralation between AEX Amsterdam and EURONEXT BEL-20
|Time Period||2 Months [change]|
Diversification Opportunities for AEX Amsterdam and EURONEXT BEL-20
Almost no diversification
Overlapping area represents the amount of risk that can be diversified away by holding AEX Amsterdam 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 AEX Amsterdam 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 AEX Amsterdam 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 AEX Amsterdam i.e. AEX Amsterdam and EURONEXT BEL-20 go up and down completely randomly.