This module allows you to analyze existing cross correlation between S&P 500 and Nasdaq. You can compare the effects of market volatilities on SP 500 and Nasdaq 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 Nasdaq. See also your portfolio center. Please also check ongoing floating volatility patterns of SP 500 and Nasdaq.
|Time Horizon||30 Days Login to change|
Assuming 30 trading days horizon, S&P 500 is expected to under-perform the Nasdaq. But the index apears to be less risky and, when comparing its historical volatility, S&P 500 is 1.04 times less risky than Nasdaq. The index trades about -0.12 of its potential returns per unit of risk. The Nasdaq is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest 740,803 in Nasdaq on January 22, 2018 and sell it today you would lose (17,372) from holding Nasdaq or give up 2.35% of portfolio value over 30 days.