This module allows you to analyze existing cross correlation between Bovespa and Hang Seng. You can compare the effects of market volatilities on Bovespa and Hang Seng 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 Hang Seng. See also your portfolio center. Please also check ongoing floating volatility patterns of Bovespa and Hang Seng.
|Time Horizon||30 Days Login to change|
Bovespa vs. Hang Seng
Assuming 30 trading days horizon, Bovespa is expected to under-perform the Hang Seng. In addition to that, Bovespa is 1.24 times more volatile than Hang Seng. It trades about -0.24 of its total potential returns per unit of risk. Hang Seng is currently generating about -0.13 per unit of volatility. If you would invest 3,041,567 in Hang Seng on May 26, 2018 and sell it today you would lose (124,562) from holding Hang Seng or give up 4.1% of portfolio value over 30 days.