Correlation Analysis Between Galapagos and XU100

This module allows you to analyze existing cross correlation between Galapagos NV and XU100. You can compare the effects of market volatilities on Galapagos and XU100 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 XU100. See also your portfolio center. Please also check ongoing floating volatility patterns of Galapagos and XU100.
Horizon     30 Days    Login   to change
Symbolsvs
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Comparative Performance

 Predicted Return Density 
      Returns 

Galapagos NV  vs.  XU100

 Performance (%) 
      Timeline 

Pair Volatility

Given the investment horizon of 30 days, Galapagos NV is expected to generate 2.22 times more return on investment than XU100. However, Galapagos is 2.22 times more volatile than XU100. It trades about 0.2 of its potential returns per unit of risk. XU100 is currently generating about 0.03 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 XU100

0.48
Time Period2 Months [change]
DirectionPositive 
StrengthWeak
Accuracy95.45%
ValuesDaily Returns

Diversification Opportunities for Galapagos and XU100

Galapagos NV diversification synergy

Very weak diversification

Overlapping area represents the amount of risk that can be diversified away by holding Galapagos NV and XU100 in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on XU100 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 XU100. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XU100 has no effect on the direction of Galapagos i.e. Galapagos and XU100 go up and down completely randomly.
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See also your portfolio center. Please also try Technical Analysis module to check basic technical indicators and analysis based on most latest market data.


 
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