This module allows you to analyze existing cross correlation between DOW and S&P 500. You can compare the effects of market volatilities on DOW and SP 500 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 SP 500. See also your portfolio center. Please also check ongoing floating volatility patterns of DOW and SP 500.
|Investment Horizon||30 Days Login to change|
Given the investment horizon of 30 days, DOW is expected to generate 1.83 times less return on investment than SP 500. But when comparing it to its historical volatility, DOW is 1.01 times less risky than SP 500. It trades about 0.11 of its potential returns per unit of risk. S&P 500 is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 255,715 in S&P 500 on October 25, 2017 and sell it today you would earn a total of 3,993 from holding S&P 500 or generate 1.56% return on investment over 30 days.