This module allows you to analyze existing cross correlation between FTSE 100 and Russell 2000 . You can compare the effects of market volatilities on FTSE 100 and Russell 2000 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 FTSE 100 with a short position of Russell 2000. See also your portfolio center
. Please also check ongoing floating volatility patterns of FTSE 100
and Russell 2000
FTSE 100 vs Russell 2000
If you would invest 150,042 in Russell 2000 on October 24, 2017 and sell it today you would earn a total of 1,634 from holding Russell 2000 or generate 1.09% return on investment over 30 days.
|Time Period||1 Month [change]|
Very good diversification
Overlapping area represents the amount of risk that can be diversified away by holding FTSE 100 and Russell 2000 in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Russell 2000 and FTSE 100 is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on FTSE 100 are associated (or correlated) with Russell 2000. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Russell 2000 has no effect on the direction of FTSE 100 i.e. FTSE 100 and Russell 2000 go up and down completely randomly.