Eurostoxx 50 investors 'unintentionally making a bet on financials', according to research
Tobam's analysis of financial markets diversification suggests that eurozone indexes might not be as diversified as investors believe
Investing in the Eurostoxx 50 index is not a neutral risk allocation but rather implies a strong weighting toward financials, according to Paris-based asset manager Tobam's first monthly analysis of the diversification of key indexes using the Diversification Ratio (DR2) method.
The ratio, which measures the extent to which a portfolio is diversified by using a monthly analysis of the evolution of diversification in key indexes, reveals that while the volatility of the Eurostoxx 50 index was 21%
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