This module allows you to analyze existing cross correlation between DOW and Nasdaq. You can compare the effects of market volatilities on DOW and Nasdaq 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 Nasdaq. See also your portfolio center. Please also check ongoing floating volatility patterns of DOW and Nasdaq.
|Time Horizon||30 Days Login to change|
Given the investment horizon of 30 days, DOW is expected to under-perform the Nasdaq. In addition to that, DOW is 1.07 times more volatile than Nasdaq. It trades about -0.1 of its total potential returns per unit of risk. Nasdaq is currently generating about -0.06 per unit of volatility. If you would invest 740,803 in Nasdaq on January 20, 2018 and sell it today you would lose (16,856) from holding Nasdaq or give up 2.28% of portfolio value over 30 days.