This module allows you to analyze existing cross correlation between DOW and Bovespa. You can compare the effects of market volatilities on DOW and Bovespa 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 DOW with a short position of Bovespa. See also your portfolio center. Please also check ongoing floating volatility patterns of DOW and Bovespa.
|Time Horizon||30 Days Login to change|
DOW vs. Bovespa
Given the investment horizon of 30 days, DOW is expected to generate 0.48 times more return on investment than Bovespa. However, DOW is 2.09 times less risky than Bovespa. It trades about 0.25 of its potential returns per unit of risk. Bovespa is currently generating about -0.17 per unit of risk. If you would invest 2,402,413 in DOW on April 24, 2018 and sell it today you would earn a total of 86,268 from holding DOW or generate 3.59% return on investment over 30 days.