This module allows you to analyze existing cross correlation between Bovespa and MerVal. You can compare the effects of market volatilities on Bovespa and MerVal 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 MerVal. See also your portfolio center. Please also check ongoing floating volatility patterns of Bovespa and MerVal.
|Investment Horizon||30 Days Login to change|
Assuming 30 trading days horizon, Bovespa is expected to under-perform the MerVal. But the index apears to be less risky and, when comparing its historical volatility, Bovespa is 1.4232987300750972E14 times less risky than MerVal. The index trades about -0.13 of its potential returns per unit of risk. The MerVal is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 2,697,898 in MerVal on October 20, 2017 and sell it today you would earn a total of 14,952 from holding MerVal or generate 0.55% return on investment over 30 days.