This module allows you to analyze existing cross correlation between IBEX 35 and EURONEXT BEL-20. You can compare the effects of market volatilities on IBEX 35 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 IBEX 35 with a short position of EURONEXT BEL-20. See also your portfolio center. Please also check ongoing floating volatility patterns of IBEX 35 and EURONEXT BEL-20.
|Time Horizon||30 Days Login to change|
IBEX 35 vs. EURONEXT BEL-20
Assuming 30 trading days horizon, IBEX 35 is expected to generate 1.55 times more return on investment than EURONEXT BEL-20. However, IBEX 35 is 1.55 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 -0.12 per unit of risk. If you would invest 999,600 in IBEX 35 on May 24, 2018 and sell it today you would lose (20,390) from holding IBEX 35 or give up 2.04% of portfolio value over 30 days.