This module allows you to analyze existing cross correlation between Galapagos NV and BSE. You can compare the effects of market volatilities on Galapagos 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 Galapagos with a short position of BSE. See also your portfolio center. Please also check ongoing floating volatility patterns of Galapagos and BSE.
|Horizon||30 Days Login to change|
Predicted Return Density
Galapagos NV vs. BSE
Given the investment horizon of 30 days, Galapagos NV is expected to generate 3.94 times more return on investment than BSE. However, Galapagos is 3.94 times more volatile than BSE. It trades about 0.22 of its potential returns per unit of risk. BSE is currently generating about -0.14 per unit of risk. If you would invest 12,740 in Galapagos NV on July 22, 2019 and sell it today you would earn a total of 3,944 from holding Galapagos NV or generate 30.96% return on investment over 30 days.
Pair Corralation between Galapagos and BSE
|Time Period||2 Months [change]|
Diversification Opportunities for Galapagos and BSE
Overlapping area represents the amount of risk that can be diversified away by holding Galapagos NV and BSE in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on BSE 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 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 Galapagos i.e. Galapagos and BSE go up and down completely randomly.
See also your portfolio center. Please also try Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..