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 under-perform the Alphabet. But the index apears to be less risky and, when comparing its historical volatility, DOW is 1.62 times less risky than Alphabet. The index trades about -0.04 of its potential returns per unit of risk. The Alphabet Inc is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 109,480 in Alphabet Inc on February 16, 2018 and sell it today you would earn a total of 4,093 from holding Alphabet Inc or generate 3.74% return on investment over 30 days.