This module allows you to analyze existing cross correlation between DOW and International Business Machines Corporation. You can compare the effects of market volatilities on DOW and International Business 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 International Business. See also your portfolio center. Please also check ongoing floating volatility patterns of DOW and International Business.
|Time Horizon||30 Days Login to change|
Given the investment horizon of 30 days, DOW is expected to under-perform the International Business. But the index apears to be less risky and, when comparing its historical volatility, DOW is 1.28 times less risky than International Business. The index trades about -0.15 of its potential returns per unit of risk. The International Business Machines Corporation is currently generating about -0.09 of returns per unit of risk over similar time horizon. If you would invest 15,318 in International Business Machines Corporation on February 22, 2018 and sell it today you would lose (429.00) from holding International Business Machines Corporation or give up 2.8% of portfolio value over 30 days.