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.
|Time Horizon||30 Days Login to change|
Given the investment horizon of 30 days, DOW is expected to generate 1.31 times more return on investment than Russell 2000. However, DOW is 1.31 times more volatile than Russell 2000 . It trades about -0.1 of its potential returns per unit of risk. Russell 2000 is currently generating about -0.13 per unit of risk. If you would invest 2,621,460 in DOW on January 20, 2018 and sell it today you would lose (99,522) from holding DOW or give up 3.8% of portfolio value over 30 days.