This module allows you to analyze existing cross correlation between Bovespa and Jakarta Comp. You can compare the effects of market volatilities on Bovespa and Jakarta Comp 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 Jakarta Comp. See also your portfolio center. Please also check ongoing floating volatility patterns of Bovespa and Jakarta Comp.
|Time Horizon||30 Days Login to change|
Assuming 30 trading days horizon, Bovespa is expected to generate 0.98 times more return on investment than Jakarta Comp. However, Bovespa is 1.02 times less risky than Jakarta Comp. It trades about -0.06 of its potential returns per unit of risk. Jakarta Comp is currently generating about -0.26 per unit of risk. If you would invest 8,605,182 in Bovespa on February 21, 2018 and sell it today you would lose (107,523) from holding Bovespa or give up 1.25% of portfolio value over 30 days.