This module allows you to analyze existing cross correlation between NZSE and EURONEXT BEL-20. You can compare the effects of market volatilities on NZSE 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 NZSE with a short position of EURONEXT BEL-20. See also your portfolio center. Please also check ongoing floating volatility patterns of NZSE and EURONEXT BEL-20.
|Time Horizon||30 Days Login to change|
Assuming 30 trading days horizon, NZSE is expected to under-perform the EURONEXT BEL-20. But the index apears to be less risky and, when comparing its historical volatility, NZSE is 1.07 times less risky than EURONEXT BEL-20. The index trades about -0.14 of its potential returns per unit of risk. The EURONEXT BEL-20 is currently generating about 0.39 of returns per unit of risk over similar time horizon. If you would invest 402,465 in EURONEXT BEL-20 on December 17, 2017 and sell it today you would earn a total of 13,980 from holding EURONEXT BEL-20 or generate 3.47% return on investment over 30 days.