This module allows you to analyze existing cross correlation between DOW and Russell 2000 . You can compare the effects of market volatilities on DOW and Russell 2000 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 Russell 2000. See also your portfolio center. Please also check ongoing floating volatility patterns of DOW and Russell 2000.
|Investment Horizon||30 Days Login to change|
Given the investment horizon of 30 days, DOW is expected to generate 1.17 times less return on investment than Russell 2000. But when comparing it to its historical volatility, DOW is 1.81 times less risky than Russell 2000. It trades about 0.05 of its potential returns per unit of risk. Russell 2000 is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 149,749 in Russell 2000 on October 22, 2017 and sell it today you would earn a total of 591 from holding Russell 2000 or generate 0.39% return on investment over 30 days.