This module allows you to analyze existing cross correlation between Taiwan Wtd and Bovespa. You can compare the effects of market volatilities on Taiwan Wtd and Bovespa 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 Taiwan Wtd with a short position of Bovespa. See also your portfolio center. Please also check ongoing floating volatility patterns of Taiwan Wtd and Bovespa.
|Time Horizon||30 Days Login to change|
Assuming 30 trading days horizon, Taiwan Wtd is expected to under-perform the Bovespa. But the index apears to be less risky and, when comparing its historical volatility, Taiwan Wtd is 1.21 times less risky than Bovespa. The index trades about -0.22 of its potential returns per unit of risk. The Bovespa is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 8,096,265 in Bovespa on January 18, 2018 and sell it today you would earn a total of 356,193 from holding Bovespa or generate 4.4% return on investment over 30 days.