This module allows you to analyze existing cross correlation between S&P 500 and Bovespa. You can compare the effects of market volatilities on SP 500 and Bovespa 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 Bovespa. See also your portfolio center. Please also check ongoing floating volatility patterns of SP 500 and Bovespa.
|Time Horizon||30 Days Login to change|
S&P 500 vs. Bovespa
Assuming 30 trading days horizon, S&P 500 is expected to under-perform the Bovespa. In addition to that, SP 500 is 1.59 times more volatile than Bovespa. It trades about -0.05 of its total potential returns per unit of risk. Bovespa is currently generating about -0.04 per unit of volatility. If you would invest 8,729,324 in Bovespa on March 26, 2018 and sell it today you would lose (182,416) from holding Bovespa or give up 2.09% of portfolio value over 30 days.