This module allows you to analyze existing cross correlation between Galapagos NV and Taiwan Wtd. You can compare the effects of market volatilities on Galapagos and Taiwan Wtd 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 Taiwan Wtd. See also your portfolio center. Please also check ongoing floating volatility patterns of Galapagos and Taiwan Wtd.
|Horizon||30 Days Login to change|
Predicted Return Density
Galapagos NV vs. Taiwan Wtd
Given the investment horizon of 30 days, Galapagos NV is expected to generate 4.06 times more return on investment than Taiwan Wtd. However, Galapagos is 4.06 times more volatile than Taiwan Wtd. It trades about 0.22 of its potential returns per unit of risk. Taiwan Wtd is currently generating about -0.06 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 Taiwan Wtd
|Time Period||2 Months [change]|
Diversification Opportunities for Galapagos and Taiwan Wtd
Overlapping area represents the amount of risk that can be diversified away by holding Galapagos NV and Taiwan Wtd in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Taiwan Wtd 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 Taiwan Wtd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Taiwan Wtd has no effect on the direction of Galapagos i.e. Galapagos and Taiwan Wtd go up and down completely randomly.
See also your portfolio center. Please also try Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.