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.
|Investment Horizon||30 Days Login to change|
Assuming 30 trading days horizon, Bovespa is expected to under-perform the Shanghai. In addition to that, Bovespa is 3.38 times more volatile than Shanghai. It trades about -0.12 of its total potential returns per unit of risk. Shanghai is currently generating about 0.04 per unit of volatility. If you would invest 337,017 in Shanghai on October 19, 2017 and sell it today you would earn a total of 1,274 from holding Shanghai or generate 0.38% return on investment over 30 days.