This module allows you to analyze existing cross correlation between Russell 2000 and EURONEXT BEL-20. You can compare the effects of market volatilities on Russell 2000 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 Russell 2000 with a short position of EURONEXT BEL-20. See also your portfolio center. Please also check ongoing floating volatility patterns of Russell 2000 and EURONEXT BEL-20.
|Time Horizon||30 Days Login to change|
Russell 2000 vs. EURONEXT BEL-20
Given the investment horizon of 30 days, Russell 2000 is expected to generate 0.7 times more return on investment than EURONEXT BEL-20. However, Russell 2000 is 1.44 times less risky than EURONEXT BEL-20. It trades about 0.28 of its potential returns per unit of risk. EURONEXT BEL-20 is currently generating about -0.17 per unit of risk. If you would invest 162,663 in Russell 2000 on May 20, 2018 and sell it today you would earn a total of 6,565 from holding Russell 2000 or generate 4.04% return on investment over 30 days.