|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 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. Please also check ongoing floating volatility patterns of SP 500 and SPY.S&P 500 vs SPY Inc.
Assuming 30 trading days horizon, SP 500 is expected to generate 94.15 times less return on investment than SPY. But when comparing it to its historical volatility, S&P 500 is 71.93 times less risky than SPY. It trades about 0.09 of its potential returns per unit of risk. SPY Inc is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 13.00 in SPY Inc on July 25, 2016 and sell it today you would earn a total of 1.00 from holding SPY Inc or generate 7.69% return on investment over 30 days.