This module allows you to analyze existing cross correlation between DOW and MerVal. You can compare the effects of market volatilities on DOW and MerVal 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 MerVal. See also your portfolio center. Please also check ongoing floating volatility patterns of DOW and MerVal.
|Time Horizon||30 Days Login to change|
DOW vs. MerVal
Given the investment horizon of 30 days, DOW is not expected to generate positive returns. However, DOW is 3.86 times less risky than MerVal. It waists most of its returns potential to compensate for thr risk taken. MerVal is generating about -0.11 per unit of risk. If you would invest 2,471,509 in DOW on May 20, 2018 and sell it today you would lose (1,475) from holding DOW or give up 0.06% of portfolio value over 30 days.