This module allows you to analyze existing cross correlation between Russell 2000 and Nasdaq. You can compare the effects of market volatilities on Russell 2000 and Nasdaq 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 Nasdaq. See also your portfolio center. Please also check ongoing floating volatility patterns of Russell 2000 and Nasdaq.
|Investment Horizon||30 Days Login to change|
Given the investment horizon of 30 days, Russell 2000 is expected to generate 3.52 times less return on investment than Nasdaq. In addition to that, Russell 2000 is 1.05 times more volatile than Nasdaq. It trades about 0.09 of its total potential returns per unit of risk. Nasdaq is currently generating about 0.34 per unit of volatility. If you would invest 655,677 in Nasdaq on October 26, 2017 and sell it today you would earn a total of 31,059 from holding Nasdaq or generate 4.74% return on investment over 30 days.