This module allows you to analyze existing cross correlation between EURONEXT BEL-20 and MerVal. You can compare the effects of market volatilities on EURONEXT BEL-20 and MerVal 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 MerVal. See also your portfolio center. Please also check ongoing floating volatility patterns of EURONEXT BEL-20 and MerVal.
|Time Horizon||30 Days Login to change|
EURONEXT BEL-20 vs. MerVal
Given the investment horizon of 30 days, EURONEXT BEL-20 is expected to generate 0.3 times more return on investment than MerVal. However, EURONEXT BEL-20 is 3.31 times less risky than MerVal. It trades about -0.17 of its potential returns per unit of risk. MerVal is currently generating about -0.2 per unit of risk. If you would invest 388,366 in EURONEXT BEL-20 on May 20, 2018 and sell it today you would lose (13,786) from holding EURONEXT BEL-20 or give up 3.55% of portfolio value over 30 days.