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.
|Time Horizon||30 Days Login to change|
Given the investment horizon of 30 days, DOW is expected to under-perform the SP 500. In addition to that, DOW is 1.11 times more volatile than S&P 500. It trades about -0.1 of its total potential returns per unit of risk. S&P 500 is currently generating about -0.1 per unit of volatility. If you would invest 283,297 in S&P 500 on January 21, 2018 and sell it today you would lose (10,075) from holding S&P 500 or give up 3.56% of portfolio value over 30 days.