This module allows you to analyze existing cross correlation between CAC 40 and EURONEXT BEL-20. You can compare the effects of market volatilities on CAC 40 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 CAC 40 with a short position of EURONEXT BEL-20. See also your portfolio center. Please also check ongoing floating volatility patterns of CAC 40 and EURONEXT BEL-20.
|Time Horizon||30 Days Login to change|
CAC 40 vs. EURONEXT BEL-20
Assuming 30 trading days horizon, CAC 40 is expected to generate 1.05 times more return on investment than EURONEXT BEL-20. However, CAC 40 is 1.05 times more volatile than EURONEXT BEL-20. It trades about 0.06 of its potential returns per unit of risk. EURONEXT BEL-20 is currently generating about -0.02 per unit of risk. If you would invest 530,217 in CAC 40 on March 23, 2018 and sell it today you would earn a total of 11,066 from holding CAC 40 or generate 2.09% return on investment over 30 days.