This module allows you to analyze existing cross correlation between Bovespa and Shanghai. You can compare the effects of market volatilities on Bovespa and Shanghai 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 Shanghai. See also your portfolio center. Please also check ongoing floating volatility patterns of Bovespa and Shanghai.
|Time Horizon||30 Days Login to change|
Bovespa vs. Shanghai
Assuming 30 trading days horizon, Bovespa is expected to generate 0.79 times more return on investment than Shanghai. However, Bovespa is 1.27 times less risky than Shanghai. It trades about -0.03 of its potential returns per unit of risk. Shanghai is currently generating about -0.12 per unit of risk. If you would invest 8,765,264 in Bovespa on March 28, 2018 and sell it today you would lose (126,944) from holding Bovespa or give up 1.45% of portfolio value over 30 days.