This module allows you to analyze existing cross correlation between Russell 2000 and S&P 500. You can compare the effects of market volatilities on Russell 2000 and SP 500 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 SP 500. See also your portfolio center. Please also check ongoing floating volatility patterns of Russell 2000 and SP 500.
|Time Horizon||30 Days Login to change|
Russell 2000 vs. S&P 500
Given the investment horizon of 30 days, Russell 2000 is expected to generate 1.03 times more return on investment than SP 500. However, Russell 2000 is 1.03 times more volatile than S&P 500. It trades about 0.24 of its potential returns per unit of risk. S&P 500 is currently generating about 0.08 per unit of risk. If you would invest 163,744 in Russell 2000 on May 21, 2018 and sell it today you would earn a total of 5,601 from holding Russell 2000 or generate 3.42% return on investment over 30 days.