This module allows you to analyze existing cross correlation between S&P 500 and FTSE MIB. You can compare the effects of market volatilities on SP 500 and FTSE MIB 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 FTSE MIB. See also your portfolio center. Please also check ongoing floating volatility patterns of SP 500 and FTSE MIB.
|Time Horizon||30 Days Login to change|
Assuming 30 trading days horizon, SP 500 is expected to generate 1.54 times less return on investment than FTSE MIB. But when comparing it to its historical volatility, S&P 500 is 1.86 times less risky than FTSE MIB. It trades about 0.58 of its potential returns per unit of risk. FTSE MIB is currently generating about 0.48 of returns per unit of risk over similar time horizon. If you would invest 2,220,905 in FTSE MIB on December 22, 2017 and sell it today you would earn a total of 154,017 from holding FTSE MIB or generate 6.93% return on investment over 30 days.