This module allows you to analyze existing cross correlation between NIKKEI 225 and Bovespa. You can compare the effects of market volatilities on NIKKEI 225 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 NIKKEI 225 with a short position of Bovespa. See also your portfolio center. Please also check ongoing floating volatility patterns of NIKKEI 225 and Bovespa.
|Time Horizon||30 Days Login to change|
Assuming 30 trading days horizon, NIKKEI 225 is expected to generate 2.35 times less return on investment than Bovespa. But when comparing it to its historical volatility, NIKKEI 225 is 1.01 times less risky than Bovespa. It trades about 0.23 of its potential returns per unit of risk. Bovespa is currently generating about 0.54 of returns per unit of risk over similar time horizon. If you would invest 7,311,545 in Bovespa on December 17, 2017 and sell it today you would earn a total of 663,693 from holding Bovespa or generate 9.08% return on investment over 30 days.