This module allows you to analyze existing cross correlation between Bursa Malaysia and EURONEXT BEL-20. You can compare the effects of market volatilities on Bursa Malaysia 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 Bursa Malaysia with a short position of EURONEXT BEL-20. See also your portfolio center. Please also check ongoing floating volatility patterns of Bursa Malaysia and EURONEXT BEL-20.
|Horizon||30 Days Login to change|
Predicted Return Density
Bursa Malaysia vs. EURONEXT BEL-20
Assuming 30 trading days horizon, Bursa Malaysia is expected to generate 0.52 times more return on investment than EURONEXT BEL-20. However, Bursa Malaysia is 1.92 times less risky than EURONEXT BEL-20. It trades about 0.06 of its potential returns per unit of risk. EURONEXT BEL-20 is currently generating about -0.28 per unit of risk. If you would invest 162,090 in Bursa Malaysia on May 17, 2019 and sell it today you would earn a total of 1,773 from holding Bursa Malaysia or generate 1.09% return on investment over 30 days.
Pair Corralation between Bursa Malaysia and EURONEXT BEL-20
|Time Period||2 Months [change]|
Diversification Opportunities for Bursa Malaysia and EURONEXT BEL-20
Overlapping area represents the amount of risk that can be diversified away by holding Bursa Malaysia and EURONEXT BEL-20 in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on EURONEXT BEL-20 and Bursa Malaysia is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Bursa Malaysia are associated (or correlated) with EURONEXT BEL-20. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EURONEXT BEL-20 has no effect on the direction of Bursa Malaysia i.e. Bursa Malaysia and EURONEXT BEL-20 go up and down completely randomly.
See also your portfolio center. Please also try Cryptocurrency Arbitrage module to find pairs of digital assets on multiple exchanges that are traded at a risk free arbitrage.