This module allows you to analyze existing cross correlation between DOW and BSE. You can compare the effects of market volatilities on DOW and BSE 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 DOW with a short position of BSE. See also your portfolio center. Please also check ongoing floating volatility patterns of DOW and BSE.
|Time Horizon||30 Days Login to change|
Given the investment horizon of 30 days, DOW is expected to generate 2.43 times more return on investment than BSE. However, DOW is 2.43 times more volatile than BSE. It trades about -0.14 of its potential returns per unit of risk. BSE is currently generating about -0.47 per unit of risk. If you would invest 2,621,081 in DOW on January 23, 2018 and sell it today you would lose (141,303) from holding DOW or give up 5.39% of portfolio value over 30 days.