This module allows you to analyze existing cross correlation between S&P 500 and BSE. You can compare the effects of market volatilities on SP 500 and BSE 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 SP 500 with a short position of BSE. See also your portfolio center. Please also check ongoing floating volatility patterns of SP 500 and BSE.
|Time Horizon||30 Days Login to change|
S&P 500 vs. BSE
Assuming 30 trading days horizon, SP 500 is expected to generate 1.75 times less return on investment than BSE. In addition to that, S&P 500 is as risky as BSE. It trades about 0.09 of its total potential returns per unit of risk. BSE is currently generating about 0.16 per unit of volatility. If you would invest 3,492,487 in BSE on May 25, 2018 and sell it today you would earn a total of 76,473 from holding BSE or generate 2.19% return on investment over 30 days.