Correlation Analysis Between Galapagos and BSE

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
Symbolsvs
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Comparative Performance

 Predicted Return Density 
      Returns 

Galapagos NV  vs.  BSE

 Performance (%) 
      Timeline 

Pair Volatility

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

-0.77
Time Period2 Months [change]
DirectionNegative 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for Galapagos and BSE

Galapagos NV diversification synergy

Pay attention

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.
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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..


 
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