This module allows you to analyze existing cross correlation between EURONEXT BEL-20 and Bovespa. You can compare the effects of market volatilities on EURONEXT BEL-20 and Bovespa 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 Bovespa. See also your portfolio center. Please also check ongoing floating volatility patterns of EURONEXT BEL-20 and Bovespa.
|Time Horizon||30 Days Login to change|
EURONEXT BEL-20 vs. Bovespa
Given the investment horizon of 30 days, EURONEXT BEL-20 is expected to under-perform the Bovespa. But the index apears to be less risky and, when comparing its historical volatility, EURONEXT BEL-20 is 2.37 times less risky than Bovespa. The index trades about -0.16 of its potential returns per unit of risk. The Bovespa is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 7,007,500 in Bovespa on May 23, 2018 and sell it today you would earn a total of 0.00 from holding Bovespa or generate 0.0% return on investment over 30 days.