This module allows you to analyze existing cross correlation between FTSE MIB and Shanghai. You can compare the effects of market volatilities on FTSE MIB and Shanghai 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 FTSE MIB with a short position of Shanghai. See also your portfolio center. Please also check ongoing floating volatility patterns of FTSE MIB and Shanghai.
|Time Horizon||30 Days Login to change|
FTSE MIB vs. Shanghai
Assuming 30 trading days horizon, FTSE MIB is expected to under-perform the Shanghai. In addition to that, FTSE MIB is 58.03 times more volatile than Shanghai. It trades about -0.58 of its total potential returns per unit of risk. Shanghai is currently generating about -0.28 per unit of volatility. If you would invest 315,465 in Shanghai on May 24, 2018 and sell it today you would lose (26,489) from holding Shanghai or give up 8.4% of portfolio value over 30 days.