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.
|Time Horizon||30 Days Login to change|
Given the investment horizon of 30 days, EURONEXT BEL-20 is expected to generate 0.92 times more return on investment than Shanghai. However, EURONEXT BEL-20 is 1.08 times less risky than Shanghai. It trades about -0.21 of its potential returns per unit of risk. Shanghai is currently generating about -0.39 per unit of risk. If you would invest 414,206 in EURONEXT BEL-20 on January 18, 2018 and sell it today you would lose (20,087) from holding EURONEXT BEL-20 or give up 4.85% of portfolio value over 30 days.