This module allows you to analyze existing cross correlation between NIKKEI 225 and EURONEXT BEL-20. You can compare the effects of market volatilities on NIKKEI 225 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 NIKKEI 225 with a short position of EURONEXT BEL-20. See also your portfolio center. Please also check ongoing floating volatility patterns of NIKKEI 225 and EURONEXT BEL-20.
|Investment Horizon||30 Days Login to change|
Assuming 30 trading days horizon, NIKKEI 225 is expected to generate 1.65 times more return on investment than EURONEXT BEL-20. However, NIKKEI 225 is 1.65 times more volatile than EURONEXT BEL-20. It trades about 0.14 of its potential returns per unit of risk. EURONEXT BEL-20 is currently generating about -0.28 per unit of risk. If you would invest 2,169,665 in NIKKEI 225 on October 23, 2017 and sell it today you would earn a total of 56,511 from holding NIKKEI 225 or generate 2.6% return on investment over 30 days.