This module allows you to analyze existing cross correlation between BSE and Israel Index. You can compare the effects of market volatilities on BSE and Israel Index 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 Israel Index. See also your portfolio center. Please also check ongoing floating volatility patterns of BSE and Israel Index.
|Time Horizon||30 Days Login to change|
Assuming 30 trading days horizon, BSE is expected to under-perform the Israel Index. But the index apears to be less risky and, when comparing its historical volatility, BSE is 1.67 times less risky than Israel Index. The index trades about -0.34 of its potential returns per unit of risk. The Israel Index is currently generating about -0.19 of returns per unit of risk over similar time horizon. If you would invest 112,560 in Israel Index on January 26, 2018 and sell it today you would lose (5,627) from holding Israel Index or give up 5.0% of portfolio value over 30 days.