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- Peer Analysis
This module allows you to analyze existing cross correlation between OSE All and Bovespa. You can compare the effects of market volatilities on OSE All 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 OSE All with a short position of Bovespa. See also your portfolio center. Please also check ongoing floating volatility patterns of OSE All and Bovespa.
|Horizon||30 Days Login to change|
Predicted Return Density
OSE All vs. Bovespa
Assuming 30 trading days horizon, OSE All is expected to under-perform the Bovespa. In addition to that, OSE All is 1.03 times more volatile than Bovespa. It trades about -0.16 of its total potential returns per unit of risk. Bovespa is currently generating about 0.06 per unit of volatility. If you would invest 8,422,000 in Bovespa on November 18, 2018 and sell it today you would earn a total of 264,565 from holding Bovespa or generate 3.14% return on investment over 30 days.
Pair Corralation between OSE All and Bovespa
|Time Period||2 Months [change]|
Diversification Opportunities for OSE All and Bovespa
Very good diversification
Overlapping area represents the amount of risk that can be diversified away by holding OSE All and Bovespa in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Bovespa and OSE All is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on OSE All are associated (or correlated) with Bovespa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bovespa has no effect on the direction of OSE All i.e. OSE All and Bovespa go up and down completely randomly.