This module allows you to analyze existing cross correlation between EURONEXT BEL-20 and Shanghai. You can compare the effects of market volatilities on EURONEXT BEL-20 and Shanghai 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 Shanghai. See also your portfolio center. Please also check ongoing floating volatility patterns of EURONEXT BEL-20 and Shanghai.
|Investment Horizon||30 Days Login to change|
Given the investment horizon of 30 days, EURONEXT BEL-20 is expected to under-perform the Shanghai. In addition to that, EURONEXT BEL-20 is 1.16 times more volatile than Shanghai. It trades about -0.15 of its total potential returns per unit of risk. Shanghai is currently generating about 0.1 per unit of volatility. If you would invest 339,690 in Shanghai on October 25, 2017 and sell it today you would earn a total of 3,180 from holding Shanghai or generate 0.94% return on investment over 30 days.