This module allows you to analyze existing cross correlation between Nasdaq and S&P 500. You can compare the effects of market volatilities on Nasdaq and SP 500 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 SP 500. See also your portfolio center. Please also check ongoing floating volatility patterns of Nasdaq and SP 500.
|Time Horizon||30 Days Login to change|
Assuming 30 trading days horizon, Nasdaq is expected to generate 1.38 times more return on investment than SP 500. However, Nasdaq is 1.38 times more volatile than S&P 500. It trades about 0.31 of its potential returns per unit of risk. S&P 500 is currently generating about 0.42 per unit of risk. If you would invest 699,476 in Nasdaq on December 17, 2017 and sell it today you would earn a total of 22,893 from holding Nasdaq or generate 3.27% return on investment over 30 days.