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This module allows you to analyze existing cross correlation between EURONEXT BEL-20 and All Ords. You can compare the effects of market volatilities on EURONEXT BEL-20 and All Ords 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 EURONEXT BEL-20 with a short position of All Ords. See also your portfolio center. Please also check ongoing floating volatility patterns of EURONEXT BEL-20 and All Ords.
|Horizon||30 Days Login to change|
Predicted Return Density
EURONEXT BEL-20 vs. All Ords
Given the investment horizon of 30 days, EURONEXT BEL-20 is expected to generate 1.23 times more return on investment than All Ords. However, EURONEXT BEL-20 is 1.23 times more volatile than All Ords. It trades about -0.1 of its potential returns per unit of risk. All Ords is currently generating about -0.14 per unit of risk. If you would invest 350,867 in EURONEXT BEL-20 on November 18, 2018 and sell it today you would lose (17,741) from holding EURONEXT BEL-20 or give up 5.06% of portfolio value over 30 days.
Pair Corralation between EURONEXT BEL-20 and All Ords
|Time Period||2 Months [change]|
Diversification Opportunities for EURONEXT BEL-20 and All Ords
Very weak diversification
Overlapping area represents the amount of risk that can be diversified away by holding EURONEXT BEL-20 and All Ords in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on All Ords and EURONEXT BEL-20 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 EURONEXT BEL-20 are associated (or correlated) with All Ords. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of All Ords has no effect on the direction of EURONEXT BEL-20 i.e. EURONEXT BEL-20 and All Ords go up and down completely randomly.