This module allows you to analyze existing cross correlation between S&P 500 and DOW. You can compare the effects of market volatilities on SP 500 and DOW 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 DOW. See also your portfolio center. Please also check ongoing floating volatility patterns of SP 500 and DOW.
|Time Horizon||30 Days Login to change|
S&P 500 vs. DOW
Assuming 30 trading days horizon, S&P 500 is expected to generate 0.98 times more return on investment than DOW. However, S&P 500 is 1.02 times less risky than DOW. It trades about -0.02 of its potential returns per unit of risk. DOW is currently generating about -0.02 per unit of risk. If you would invest 270,133 in S&P 500 on March 23, 2018 and sell it today you would lose (5,418) from holding S&P 500 or give up 2.01% of portfolio value over 30 days.