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.
|Investment Horizon||30 Days Login to change|
Assuming 30 trading days horizon, Bovespa is expected to under-perform the EURONEXT BEL-20. In addition to that, Bovespa is 2.65 times more volatile than EURONEXT BEL-20. It trades about -0.18 of its total potential returns per unit of risk. EURONEXT BEL-20 is currently generating about -0.18 per unit of volatility. If you would invest 407,525 in EURONEXT BEL-20 on October 18, 2017 and sell it today you would lose (8,339) from holding EURONEXT BEL-20 or give up 2.05% of portfolio value over 30 days.