This module allows you to analyze existing cross correlation between DOW and EURONEXT BEL-20. You can compare the effects of market volatilities on DOW 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 DOW with a short position of EURONEXT BEL-20. See also your portfolio center. Please also check ongoing floating volatility patterns of DOW and EURONEXT BEL-20.
|Time Horizon||30 Days Login to change|
Given the investment horizon of 30 days, DOW is expected to generate 1.02 times more return on investment than EURONEXT BEL-20. However, DOW is 1.02 times more volatile than EURONEXT BEL-20. It trades about 0.6 of its potential returns per unit of risk. EURONEXT BEL-20 is currently generating about 0.48 per unit of risk. If you would invest 2,475,406 in DOW on December 22, 2017 and sell it today you would earn a total of 131,766 from holding DOW or generate 5.32% return on investment over 30 days.