This module allows you to analyze existing cross correlation between Nasdaq and EURONEXT BEL-20. You can compare the effects of market volatilities on Nasdaq 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 Nasdaq with a short position of EURONEXT BEL-20. See also your portfolio center. Please also check ongoing floating volatility patterns of Nasdaq and EURONEXT BEL-20.
|Time Horizon||30 Days Login to change|
Assuming 30 trading days horizon, Nasdaq is expected to generate 1.52 times more return on investment than EURONEXT BEL-20. However, Nasdaq is 1.52 times more volatile than EURONEXT BEL-20. It trades about -0.09 of its potential returns per unit of risk. EURONEXT BEL-20 is currently generating about -0.22 per unit of risk. If you would invest 746,029 in Nasdaq on January 23, 2018 and sell it today you would lose (24,206) from holding Nasdaq or give up 3.24% of portfolio value over 30 days.