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.
|Investment Horizon||30 Days Login to change|
Assuming 30 trading days horizon, S&P 500 is expected to generate 0.25 times more return on investment than Bovespa. However, S&P 500 is 4.0 times less risky than Bovespa. It trades about 0.08 of its potential returns per unit of risk. Bovespa is currently generating about -0.09 per unit of risk. If you would invest 256,498 in S&P 500 on October 21, 2017 and sell it today you would earn a total of 1,387 from holding S&P 500 or generate 0.54% return on investment over 30 days.