This module allows you to analyze existing cross correlation between Bovespa and EURONEXT BEL-20. You can compare the effects of market volatilities on Bovespa and EURONEXT BEL-20 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 Bovespa with a short position of EURONEXT BEL-20. See also your portfolio center. Please also check ongoing floating volatility patterns of Bovespa and EURONEXT BEL-20.
|Time Horizon||30 Days Login to change|
Assuming 30 trading days horizon, Bovespa is expected to generate 1.74 times more return on investment than EURONEXT BEL-20. However, Bovespa is 1.74 times more volatile than EURONEXT BEL-20. It trades about 0.54 of its potential returns per unit of risk. EURONEXT BEL-20 is currently generating about 0.39 per unit of risk. If you would invest 7,311,545 in Bovespa on December 17, 2017 and sell it today you would earn a total of 671,632 from holding Bovespa or generate 9.19% return on investment over 30 days.