This module allows you to analyze existing cross correlation between Bovespa and IBEX 35. You can compare the effects of market volatilities on Bovespa and IBEX 35 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 IBEX 35. See also your portfolio center. Please also check ongoing floating volatility patterns of Bovespa and IBEX 35.
|Time Horizon||30 Days Login to change|
Bovespa vs. IBEX 35
Assuming 30 trading days horizon, Bovespa is expected to generate 1.52 times more return on investment than IBEX 35. However, Bovespa is 1.52 times more volatile than IBEX 35. It trades about 0.01 of its potential returns per unit of risk. IBEX 35 is currently generating about -0.1 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 204,841 from holding Bovespa or generate 2.92% return on investment over 30 days.