This module allows you to analyze existing cross correlation between DOW and MerVal. You can compare the effects of market volatilities on DOW and MerVal 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 MerVal. See also your portfolio center. Please also check ongoing floating volatility patterns of DOW and MerVal.
|Investment Horizon||30 Days Login to change|
Given the investment horizon of 30 days, DOW is expected to generate 1.4260006241270482E15 times less return on investment than MerVal. But when comparing it to its historical volatility, DOW is 5.542360556572024E14 times less risky than MerVal. It trades about 0.08 of its potential returns per unit of risk. MerVal is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 2,800,954 in MerVal on October 24, 2017 and sell it today you would lose (68,157) from holding MerVal or give up 2.43% of portfolio value over 30 days.