This module allows you to analyze existing cross correlation between DOW and Alphabet Inc. You can compare the effects of market volatilities on DOW and Alphabet 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 Alphabet. See also your portfolio center. Please also check ongoing floating volatility patterns of DOW and Alphabet.
|Time Horizon||30 Days Login to change|
Given the investment horizon of 30 days, DOW is expected to generate 1.11 times less return on investment than Alphabet. But when comparing it to its historical volatility, DOW is 2.05 times less risky than Alphabet. It trades about 0.55 of its potential returns per unit of risk. Alphabet Inc is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest 107,714 in Alphabet Inc on December 17, 2017 and sell it today you would earn a total of 4,857 from holding Alphabet Inc or generate 4.51% return on investment over 30 days.