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 0.91 times more return on investment than EURONEXT BEL-20. However, Bovespa is 1.1 times less risky than EURONEXT BEL-20. It trades about -0.12 of its potential returns per unit of risk. EURONEXT BEL-20 is currently generating about -0.2 per unit of risk. If you would invest 8,668,645 in Bovespa on February 22, 2018 and sell it today you would lose (191,857) from holding Bovespa or give up 2.21% of portfolio value over 30 days.