This module allows you to analyze existing cross correlation between Straits Tms and EURONEXT BEL-20. You can compare the effects of market volatilities on Straits Tms 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 Straits Tms with a short position of EURONEXT BEL-20. See also your portfolio center. Please also check ongoing floating volatility patterns of Straits Tms and EURONEXT BEL-20.
|Time Horizon||30 Days Login to change|
Straits Tms vs. EURONEXT BEL-20
Given the investment horizon of 30 days, Straits Tms is expected to under-perform the EURONEXT BEL-20. But the index apears to be less risky and, when comparing its historical volatility, Straits Tms is 1.12 times less risky than EURONEXT BEL-20. The index trades about -0.42 of its potential returns per unit of risk. The EURONEXT BEL-20 is currently generating about -0.11 of returns per unit of risk over similar time horizon. If you would invest 385,406 in EURONEXT BEL-20 on May 26, 2018 and sell it today you would lose (9,049) from holding EURONEXT BEL-20 or give up 2.35% of portfolio value over 30 days.