This module allows you to analyze existing cross correlation between Jakarta Comp and Bovespa. You can compare the effects of market volatilities on Jakarta Comp 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 Jakarta Comp with a short position of Bovespa. See also your portfolio center. Please also check ongoing floating volatility patterns of Jakarta Comp and Bovespa.
|Time Horizon||30 Days Login to change|
Assuming 30 trading days horizon, Jakarta Comp is expected to generate 1.76 times less return on investment than Bovespa. But when comparing it to its historical volatility, Jakarta Comp is 1.43 times less risky than Bovespa. It trades about 0.5 of its potential returns per unit of risk. Bovespa is currently generating about 0.62 of returns per unit of risk over similar time horizon. If you would invest 7,336,703 in Bovespa on December 20, 2017 and sell it today you would earn a total of 782,213 from holding Bovespa or generate 10.66% return on investment over 30 days.