This module allows you to analyze existing cross correlation between Nasdaq and Shanghai. You can compare the effects of market volatilities on Nasdaq and Shanghai 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 Shanghai. See also your portfolio center. Please also check ongoing floating volatility patterns of Nasdaq and Shanghai.
|Time Horizon||30 Days Login to change|
Nasdaq vs. Shanghai
Assuming 30 trading days horizon, Nasdaq is expected to generate 1.43 times more return on investment than Shanghai. However, Nasdaq is 1.43 times more volatile than Shanghai. It trades about -0.05 of its potential returns per unit of risk. Shanghai is currently generating about -0.07 per unit of risk. If you would invest 733,739 in Nasdaq on March 26, 2018 and sell it today you would lose (33,004) from holding Nasdaq or give up 4.5% of portfolio value over 30 days.