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.
|Time Horizon||30 Days Login to change|
Assuming 30 trading days horizon, S&P 500 is expected to generate 1.2 times more return on investment than EURONEXT BEL-20. However, SP 500 is 1.2 times more volatile than EURONEXT BEL-20. It trades about -0.09 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 270,396 in S&P 500 on February 22, 2018 and sell it today you would lose (6,027) from holding S&P 500 or give up 2.23% of portfolio value over 30 days.