This module allows you to analyze existing cross correlation between DOW and Bovespa. You can compare the effects of market volatilities on DOW 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 DOW with a short position of Bovespa. See also your portfolio center. Please also check ongoing floating volatility patterns of DOW and Bovespa.
|Investment Horizon||30 Days Login to change|
Given the investment horizon of 30 days, DOW is expected to generate 0.27 times more return on investment than Bovespa. However, DOW is 3.71 times less risky than Bovespa. It trades about 0.16 of its potential returns per unit of risk. Bovespa is currently generating about -0.09 per unit of risk. If you would invest 2,327,396 in DOW on October 23, 2017 and sell it today you would earn a total of 31,687 from holding DOW or generate 1.36% return on investment over 30 days.