This module allows you to analyze existing cross correlation between Shanghai and FTSE MIB. You can compare the effects of market volatilities on Shanghai and FTSE MIB 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 FTSE MIB. See also your portfolio center. Please also check ongoing floating volatility patterns of Shanghai and FTSE MIB.
|Time Horizon||30 Days Login to change|
Assuming 30 trading days horizon, Shanghai is expected to under-perform the FTSE MIB. In addition to that, Shanghai is 1.87 times more volatile than FTSE MIB. It trades about -0.37 of its total potential returns per unit of risk. FTSE MIB is currently generating about -0.57 per unit of volatility. If you would invest 2,385,699 in FTSE MIB on January 26, 2018 and sell it today you would lose (65,433) from holding FTSE MIB or give up 2.74% of portfolio value over 30 days.