This module allows you to analyze existing cross correlation between All Ords and S&P 500. You can compare the effects of market volatilities on All Ords and SP 500 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 All Ords with a short position of SP 500. See also your portfolio center. Please also check ongoing floating volatility patterns of All Ords and SP 500.
|Time Horizon||30 Days Login to change|
Assuming 30 trading days horizon, All Ords is expected to under-perform the SP 500. But the index apears to be less risky and, when comparing its historical volatility, All Ords is 1.28 times less risky than SP 500. The index trades about -0.12 of its potential returns per unit of risk. The S&P 500 is currently generating about 0.58 of returns per unit of risk over similar time horizon. If you would invest 268,334 in S&P 500 on December 22, 2017 and sell it today you would earn a total of 12,696 from holding S&P 500 or generate 4.73% return on investment over 30 days.