This module allows you to analyze existing cross correlation between Nasdaq and S&P 500. You can compare the effects of market volatilities on Nasdaq and SP 500 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 Nasdaq with a short position of SP 500. See also your portfolio center. Please also check ongoing floating volatility patterns of Nasdaq and SP 500.
|Time Horizon||30 Days Login to change|
Assuming 30 trading days horizon, Nasdaq is expected to generate 1.04 times more return on investment than SP 500. However, Nasdaq is 1.04 times more volatile than S&P 500. It trades about -0.06 of its potential returns per unit of risk. S&P 500 is currently generating about -0.1 per unit of risk. If you would invest 740,803 in Nasdaq on January 20, 2018 and sell it today you would lose (16,856) from holding Nasdaq or give up 2.28% of portfolio value over 30 days.