This module allows you to analyze existing cross correlation between Shanghai and Bovespa. You can compare the effects of market volatilities on Shanghai 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 Shanghai with a short position of Bovespa. See also your portfolio center. Please also check ongoing floating volatility patterns of Shanghai and Bovespa.
|Time Horizon||30 Days Login to change|
Assuming 30 trading days horizon, Shanghai is expected to generate 0.95 times more return on investment than Bovespa. However, Shanghai is 1.05 times less risky than Bovespa. It trades about 0.0 of its potential returns per unit of risk. Bovespa is currently generating about -0.06 per unit of risk. If you would invest 326,856 in Shanghai on February 21, 2018 and sell it today you would lose (507.89) from holding Shanghai or give up 0.16% of portfolio value over 30 days.