This module allows you to analyze existing cross correlation between Russell 2000 and NYSE. You can compare the effects of market volatilities on Russell 2000 and NYSE 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 NYSE. See also your portfolio center. Please also check ongoing floating volatility patterns of Russell 2000 and NYSE.
|Investment Horizon||30 Days Login to change|
Given the investment horizon of 30 days, Russell 2000 is expected to under-perform the NYSE. In addition to that, Russell 2000 is 2.23 times more volatile than NYSE. It trades about -0.07 of its total potential returns per unit of risk. NYSE is currently generating about -0.16 per unit of volatility. If you would invest 1,243,053 in NYSE on October 20, 2017 and sell it today you would lose (12,763) from holding NYSE or give up 1.03% of portfolio value over 30 days.