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|
AEX Amsterdam vs. BSE
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
|Time Period||2 Months [change]|
Diversification Opportunities for AEX Amsterdam and BSE
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.
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.