This module allows you to analyze existing cross correlation between Russell 2000 and Bovespa. You can compare the effects of market volatilities on Russell 2000 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 Russell 2000 with a short position of Bovespa. See also your portfolio center. Please also check ongoing floating volatility patterns of Russell 2000 and Bovespa.
|Time Horizon||30 Days Login to change|
Russell 2000 vs. Bovespa
Given the investment horizon of 30 days, Russell 2000 is expected to generate 1.51 times more return on investment than Bovespa. However, Russell 2000 is 1.51 times more volatile than Bovespa. It trades about 0.0 of its potential returns per unit of risk. Bovespa is currently generating about -0.07 per unit of risk. If you would invest 155,933 in Russell 2000 on March 27, 2018 and sell it today you would lose (886.32) from holding Russell 2000 or give up 0.57% of portfolio value over 30 days.