Correlation Analysis Between AEX Amsterdam and BSE

This module allows you to analyze existing cross correlation between AEX Amsterdam and BSE. You can compare the effects of market volatilities on AEX Amsterdam and BSE 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 BSE. See also your portfolio center. Please also check ongoing floating volatility patterns of AEX Amsterdam and BSE.
Horizon     30 Days    Login   to change
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Comparative Performance

AEX Amsterdam  vs.  BSE

 Performance (%) 
      Timeline 

Pair Volatility

Given the investment horizon of 30 days, AEX Amsterdam is expected to under-perform the BSE. But the index apears to be less risky and, when comparing its historical volatility, AEX Amsterdam is 1.39 times less risky than BSE. The index trades about -0.09 of its potential returns per unit of risk. The BSE is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  3,864,518  in BSE on May 20, 2019 and sell it today you would earn a total of  51,756  from holding BSE or generate 1.34% return on investment over 30 days.

Pair Corralation between AEX Amsterdam and BSE

0.0
Time Period2 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy90.24%
ValuesDaily Returns

Diversification Opportunities for AEX Amsterdam and BSE

AEX Amsterdam diversification synergy

Pay attention

Overlapping area represents the amount of risk that can be diversified away by holding AEX Amsterdam and BSE in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on BSE 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 BSE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BSE has no effect on the direction of AEX Amsterdam i.e. AEX Amsterdam and BSE go up and down completely randomly.
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See also your portfolio center. Please also try Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.


 
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