This module allows you to analyze existing cross correlation between DOW and S&P 500. You can compare the effects of market volatilities on DOW and SP 500 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 SP 500. See also your portfolio center. Please also check ongoing floating volatility patterns of DOW and SP 500.
|Time Horizon||30 Days Login to change|
DOW vs. S&P 500
Given the investment horizon of 30 days, DOW is expected to generate 1.04 times less return on investment than SP 500. In addition to that, DOW is 1.02 times more volatile than S&P 500. It trades about 0.25 of its total potential returns per unit of risk. S&P 500 is currently generating about 0.27 per unit of volatility. If you would invest 263,456 in S&P 500 on April 24, 2018 and sell it today you would earn a total of 9,873 from holding S&P 500 or generate 3.75% return on investment over 30 days.