This module allows you to analyze existing cross correlation between EURONEXT BEL-20 and NYSE. You can compare the effects of market volatilities on EURONEXT BEL-20 and NYSE 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 NYSE. See also your portfolio center. Please also check ongoing floating volatility patterns of EURONEXT BEL-20 and NYSE.
|Horizon||30 Days Login to change|
Predicted Return Density
EURONEXT BEL-20 vs. NYSE
Given the investment horizon of 30 days, EURONEXT BEL-20 is expected to generate 1.14 times more return on investment than NYSE. However, EURONEXT BEL-20 is 1.14 times more volatile than NYSE. It trades about 0.01 of its potential returns per unit of risk. NYSE is currently generating about -0.01 per unit of risk. If you would invest 372,647 in EURONEXT BEL-20 on September 22, 2019 and sell it today you would earn a total of 2,646 from holding EURONEXT BEL-20 or generate 0.71% return on investment over 30 days.
Pair Corralation between EURONEXT BEL-20 and NYSE
|Time Period||3 Months [change]|
Diversification Opportunities for EURONEXT BEL-20 and NYSE
Very poor diversification
Overlapping area represents the amount of risk that can be diversified away by holding EURONEXT BEL-20 and NYSE in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on NYSE 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 NYSE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NYSE has no effect on the direction of EURONEXT BEL-20 i.e. EURONEXT BEL-20 and NYSE go up and down completely randomly.
See also your portfolio center. Please also try Bollinger Bands module to use bollinger bands indicator to analyze target price for a given investing horizon.