|Investment Horizon||30 Days Login to change|
This module allows you to analyze existing cross correlation between S&P 500 and SPY Inc. You can compare the effects of market volatilities on SP 500 and SPY Inc 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 SPY Inc. Please also check ongoing floating volatility patterns of SP 500 and SPY Inc.S&P 500 vs SPY Inc.
|Daily Returns (%)|
Assuming 30 trading days horizon, S&P 500 is expected to under-perform the SPY Inc. But the index apears to be less risky and, when comparing its historical volatility, S&P 500 is 26.45 times less risky than SPY Inc. The index trades about -0.15 of its potential returns per unit of risk. The SPY Inc is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 50.00 in SPY Inc on August 1, 2015 and sell it today you would earn a total of 9.00 from holding SPY Inc or generate 18.0% return on investment over 30 days.
Historical Performance Chart
Predicted Return Density