This module allows you to analyze existing cross correlation between Bovespa and OSE All. You can compare the effects of market volatilities on Bovespa and OSE All 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 OSE All. See also your portfolio center. Please also check ongoing floating volatility patterns of Bovespa and OSE All.
|Horizon||30 Days Login to change|
Predicted Return Density
Bovespa vs. OSE All
Assuming 30 trading days horizon, Bovespa is expected to generate 2.46 times less return on investment than OSE All. But when comparing it to its historical volatility, Bovespa is 1.13 times less risky than OSE All. It trades about 0.02 of its potential returns per unit of risk. OSE All is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 96,449 in OSE All on September 18, 2019 and sell it today you would earn a total of 2,165 from holding OSE All or generate 2.24% return on investment over 30 days.
Pair Corralation between Bovespa and OSE All
|Time Period||3 Months [change]|
Diversification Opportunities for Bovespa and OSE All
Overlapping area represents the amount of risk that can be diversified away by holding Bovespa and OSE All in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on OSE All and Bovespa is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Bovespa are associated (or correlated) with OSE All. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OSE All has no effect on the direction of Bovespa i.e. Bovespa and OSE All go up and down completely randomly.
See also your portfolio center. Please also try Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..