This module allows you to analyze existing cross correlation between Bovespa and ATX. You can compare the effects of market volatilities on Bovespa and ATX 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 Bovespa with a short position of ATX. See also your portfolio center. Please also check ongoing floating volatility patterns of Bovespa and ATX.
Assuming 30 trading days horizon, Bovespa is expected to generate 1.23 times more return on investment than ATX. However, Bovespa is 1.23 times more volatile than ATX. It trades about 0.47 of its potential returns per unit of risk. ATX is currently generating about 0.04 per unit of risk. If you would invest 7,064,065 in Bovespa on June 23, 2018 and sell it today you would earn a total of 793,035 from holding Bovespa or generate 11.23% return on investment over 30 days.
Overlapping area represents the amount of risk that can be diversified away by holding Bovespa and ATX in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on ATX and Bovespa 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 Bovespa are associated (or correlated) with ATX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATX has no effect on the direction of Bovespa i.e. Bovespa and ATX go up and down completely randomly.
Build portfolios using Macroaxis predefined set of investing ideas. Many of Macroaxis investing ideas can easily outperform a given market. Ideas can also be optimized per your risk profile before portfolio origination is invoked.