This module allows you to analyze existing cross correlation between S&P 500 and Russell 2000 . You can compare the effects of market volatilities on SP 500 and Russell 2000 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 Russell 2000. See also your portfolio center. Please also check ongoing floating volatility patterns of SP 500 and Russell 2000.
|Investment Horizon||30 Days Login to change|
Assuming 30 trading days horizon, S&P 500 is expected to generate 0.53 times more return on investment than Russell 2000. However, S&P 500 is 1.87 times less risky than Russell 2000. It trades about 0.09 of its potential returns per unit of risk. Russell 2000 is currently generating about 0.03 per unit of risk. If you would invest 256,498 in S&P 500 on October 22, 2017 and sell it today you would earn a total of 1,716 from holding S&P 500 or generate 0.67% return on investment over 30 days.