This module allows you to analyze existing cross correlation between Bovespa and DOW. You can compare the effects of market volatilities on Bovespa and DOW 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 DOW. See also your portfolio center. Please also check ongoing floating volatility patterns of Bovespa and DOW.
|Time Horizon||30 Days Login to change|
Bovespa vs. DOW
Assuming 30 trading days horizon, Bovespa is expected to generate 2.62 times more return on investment than DOW. However, Bovespa is 2.62 times more volatile than DOW. It trades about 0.01 of its potential returns per unit of risk. DOW is currently generating about -0.05 per unit of risk. If you would invest 7,007,500 in Bovespa on May 23, 2018 and sell it today you would earn a total of 57,555 from holding Bovespa or generate 0.82% return on investment over 30 days.