Correlation Analysis Between Galapagos and All Ords

This module allows you to analyze existing cross correlation between Galapagos NV and All Ords. You can compare the effects of market volatilities on Galapagos and All Ords 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 Galapagos with a short position of All Ords. See also your portfolio center. Please also check ongoing floating volatility patterns of Galapagos and All Ords.
Horizon     30 Days    Login   to change
Symbolsvs
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Comparative Performance

 Predicted Return Density 
      Returns 

Galapagos NV  vs.  All Ords

 Performance (%) 
      Timeline 

Pair Volatility

Given the investment horizon of 30 days, Galapagos NV is expected to generate 3.23 times more return on investment than All Ords. However, Galapagos is 3.23 times more volatile than All Ords. It trades about 0.2 of its potential returns per unit of risk. All Ords is currently generating about -0.04 per unit of risk. If you would invest  12,628  in Galapagos NV on July 25, 2019 and sell it today you would earn a total of  3,669  from holding Galapagos NV or generate 29.05% return on investment over 30 days.

Pair Corralation between Galapagos and All Ords

0.26
Time Period2 Months [change]
DirectionPositive 
StrengthVery Weak
Accuracy81.82%
ValuesDaily Returns

Diversification Opportunities for Galapagos and All Ords

Galapagos NV diversification synergy

Modest diversification

Overlapping area represents the amount of risk that can be diversified away by holding Galapagos NV and All Ords in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on All Ords and Galapagos 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 Galapagos NV are associated (or correlated) with All Ords. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of All Ords has no effect on the direction of Galapagos i.e. Galapagos and All Ords go up and down completely randomly.
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