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.
|Time Horizon||30 Days Login to change|
S&P 500 vs. Russell 2000
Assuming 30 trading days horizon, SP 500 is expected to generate 1.29 times less return on investment than Russell 2000. In addition to that, SP 500 is 1.02 times more volatile than Russell 2000 . It trades about 0.19 of its total potential returns per unit of risk. Russell 2000 is currently generating about 0.25 per unit of volatility. If you would invest 162,663 in Russell 2000 on May 19, 2018 and sell it today you would earn a total of 5,728 from holding Russell 2000 or generate 3.52% return on investment over 30 days.