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|
DOW vs. EURONEXT BEL-20
Given the investment horizon of 30 days, DOW is expected to under-perform the EURONEXT BEL-20. In addition to that, DOW is 1.86 times more volatile than EURONEXT BEL-20. It trades about -0.09 of its total potential returns per unit of risk. EURONEXT BEL-20 is currently generating about -0.06 per unit of volatility. If you would invest 399,250 in EURONEXT BEL-20 on March 27, 2018 and sell it today you would lose (9,943) from holding EURONEXT BEL-20 or give up 2.49% of portfolio value over 30 days.