This module allows you to analyze existing cross correlation between IPC and Bovespa. You can compare the effects of market volatilities on IPC 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 IPC with a short position of Bovespa. See also your portfolio center. Please also check ongoing floating volatility patterns of IPC and Bovespa.
|Investment Horizon||30 Days Login to change|
Given the investment horizon of 30 days, IPC is expected to under-perform the Bovespa. But the index apears to be less risky and, when comparing its historical volatility, IPC is 1.74 times less risky than Bovespa. The index trades about -0.21 of its potential returns per unit of risk. The Bovespa is currently generating about -0.09 of returns per unit of risk over similar time horizon. If you would invest 7,541,314 in Bovespa on October 23, 2017 and sell it today you would lose (197,586) from holding Bovespa or give up 2.62% of portfolio value over 30 days.