Correlation Analysis Between Galapagos and NASDAQ UK

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

 Predicted Return Density 
      Returns 

Galapagos NV  vs.  NASDAQ UK

 Performance (%) 
      Timeline 

Pair Volatility

Given the investment horizon of 30 days, Galapagos NV is expected to generate 4.15 times more return on investment than NASDAQ UK. However, Galapagos is 4.15 times more volatile than NASDAQ UK. It trades about 0.2 of its potential returns per unit of risk. NASDAQ UK is currently generating about -0.23 per unit of risk. If you would invest  12,581  in Galapagos NV on July 26, 2019 and sell it today you would earn a total of  3,716  from holding Galapagos NV or generate 29.54% return on investment over 30 days.

Pair Corralation between Galapagos and NASDAQ UK

-0.48
Time Period2 Months [change]
DirectionNegative 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for Galapagos and NASDAQ UK

Galapagos NV diversification synergy

Very good diversification

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