This module allows you to analyze existing cross correlation between Russell 2000 and IBEX 35. You can compare the effects of market volatilities on Russell 2000 and IBEX 35 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 IBEX 35. See also your portfolio center. Please also check ongoing floating volatility patterns of Russell 2000 and IBEX 35.
|Investment Horizon||30 Days Login to change|
Given the investment horizon of 30 days, Russell 2000 is expected to generate 0.7 times more return on investment than IBEX 35. However, Russell 2000 is 1.43 times less risky than IBEX 35. It trades about -0.08 of its potential returns per unit of risk. IBEX 35 is currently generating about -0.08 per unit of risk. If you would invest 150,514 in Russell 2000 on October 18, 2017 and sell it today you would lose (1,826) from holding Russell 2000 or give up 1.21% of portfolio value over 30 days.