This module allows you to analyze existing cross correlation between Nasdaq and DOW. You can compare the effects of market volatilities on Nasdaq and DOW 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 Nasdaq with a short position of DOW. See also your portfolio center. Please also check ongoing floating volatility patterns of Nasdaq and DOW.
|Time Horizon||30 Days Login to change|
Nasdaq vs. DOW
Assuming 30 trading days horizon, Nasdaq is expected to generate 0.84 times more return on investment than DOW. However, Nasdaq is 1.2 times less risky than DOW. It trades about 0.24 of its potential returns per unit of risk. DOW is currently generating about -0.05 per unit of risk. If you would invest 742,443 in Nasdaq on May 24, 2018 and sell it today you would earn a total of 26,839 from holding Nasdaq or generate 3.61% return on investment over 30 days.