This module allows you to analyze existing cross correlation between Hang Seng and Bovespa. You can compare the effects of market volatilities on Hang Seng and Bovespa 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 Hang Seng with a short position of Bovespa. See also your portfolio center. Please also check ongoing floating volatility patterns of Hang Seng and Bovespa.
|Time Horizon||30 Days Login to change|
Given the investment horizon of 30 days, Hang Seng is expected to under-perform the Bovespa. In addition to that, Hang Seng is 1.03 times more volatile than Bovespa. It trades about -0.13 of its total potential returns per unit of risk. Bovespa is currently generating about 0.16 per unit of volatility. If you would invest 8,167,542 in Bovespa on January 22, 2018 and sell it today you would earn a total of 437,640 from holding Bovespa or generate 5.36% return on investment over 30 days.