This module allows you to analyze existing cross correlation between S&P 500 and EURONEXT BEL-20. You can compare the effects of market volatilities on SP 500 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 SP 500 with a short position of EURONEXT BEL-20. See also your portfolio center. Please also check ongoing floating volatility patterns of SP 500 and EURONEXT BEL-20.
|Horizon||30 Days Login to change|
Predicted Return Density
S&P 500 vs. EURONEXT BEL-20
Assuming 30 trading days horizon, SP 500 is expected to generate 6.91 times less return on investment than EURONEXT BEL-20. But when comparing it to its historical volatility, S&P 500 is 1.25 times less risky than EURONEXT BEL-20. It trades about 0.01 of its potential returns per unit of risk. EURONEXT BEL-20 is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 368,049 in EURONEXT BEL-20 on September 19, 2019 and sell it today you would earn a total of 7,729 from holding EURONEXT BEL-20 or generate 2.1% return on investment over 30 days.
Pair Corralation between SP 500 and EURONEXT BEL-20
|Time Period||3 Months [change]|
Diversification Opportunities for SP 500 and EURONEXT BEL-20
Very poor diversification
Overlapping area represents the amount of risk that can be diversified away by holding S&P 500 and EURONEXT BEL-20 in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on EURONEXT BEL-20 and SP 500 is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on S&P 500 are associated (or correlated) with EURONEXT BEL-20. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EURONEXT BEL-20 has no effect on the direction of SP 500 i.e. SP 500 and EURONEXT BEL-20 go up and down completely randomly.
See also your portfolio center. Please also try Equity Valuation module to check real value of public entities based on technical and fundamental data.