This module allows you to analyze existing cross correlation between Swiss Mrt and EURONEXT BEL-20. You can compare the effects of market volatilities on Swiss Mrt 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 Swiss Mrt with a short position of EURONEXT BEL-20. See also your portfolio center. Please also check ongoing floating volatility patterns of Swiss Mrt and EURONEXT BEL-20.
|Time Horizon||30 Days Login to change|
Assuming 30 trading days horizon, Swiss Mrt is expected to under-perform the EURONEXT BEL-20. But the index apears to be less risky and, when comparing its historical volatility, Swiss Mrt is 1.05 times less risky than EURONEXT BEL-20. The index trades about -0.27 of its potential returns per unit of risk. The EURONEXT BEL-20 is currently generating about -0.19 of returns per unit of risk over similar time horizon. If you would invest 416,201 in EURONEXT BEL-20 on January 26, 2018 and sell it today you would lose (19,579) from holding EURONEXT BEL-20 or give up 4.7% of portfolio value over 30 days.