This module allows you to analyze existing cross correlation between BSE and SPTSX Comp. You can compare the effects of market volatilities on BSE and SPTSX Comp 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 BSE with a short position of SPTSX Comp. See also your portfolio center. Please also check ongoing floating volatility patterns of BSE and SPTSX Comp.
|Time Horizon||30 Days Login to change|
Assuming 30 trading days horizon, BSE is expected to under-perform the SPTSX Comp. But the index apears to be less risky and, when comparing its historical volatility, BSE is 1.11 times less risky than SPTSX Comp. The index trades about -0.34 of its potential returns per unit of risk. The SPTSX Comp is currently generating about -0.2 of returns per unit of risk over similar time horizon. If you would invest 1,623,920 in SPTSX Comp on January 26, 2018 and sell it today you would lose (60,075) from holding SPTSX Comp or give up 3.7% of portfolio value over 30 days.