Pair Correlation Between SP 500 and EURONEXT BEL-20

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
 S&P 500  vs   EURONEXT BEL-20
 Performance (%) 

Pair Volatility

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.

Correlation Coefficient

Pair Corralation between SP 500 and EURONEXT BEL-20


Time Period1 Month [change]
ValuesDaily Returns


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.

Comparative Volatility

 Predicted Return Density