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.
|Time Horizon||30 Days Login to change|
NIKKEI 225 vs. EURONEXT BEL-20
Assuming 30 trading days horizon, NIKKEI 225 is expected to generate 0.98 times more return on investment than EURONEXT BEL-20. However, NIKKEI 225 is 1.02 times less risky than EURONEXT BEL-20. It trades about -0.05 of its potential returns per unit of risk. EURONEXT BEL-20 is currently generating about -0.13 per unit of risk. If you would invest 2,293,036 in NIKKEI 225 on May 19, 2018 and sell it today you would lose (25,003) from holding NIKKEI 225 or give up 1.09% of portfolio value over 30 days.