This module allows you to analyze existing cross correlation between Russell 2000 and Stockholm. You can compare the effects of market volatilities on Russell 2000 and Stockholm 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 Stockholm. See also your portfolio center. Please also check ongoing floating volatility patterns of Russell 2000 and Stockholm.
|Time Horizon||30 Days Login to change|
Given the investment horizon of 30 days, Russell 2000 is expected to generate 1.3 times more return on investment than Stockholm. However, Russell 2000 is 1.3 times more volatile than Stockholm. It trades about 0.19 of its potential returns per unit of risk. Stockholm is currently generating about 0.15 per unit of risk. If you would invest 154,892 in Russell 2000 on December 18, 2017 and sell it today you would earn a total of 3,774 from holding Russell 2000 or generate 2.44% return on investment over 30 days.