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|
Nasdaq vs. S&P 500
Assuming 30 trading days horizon, Nasdaq is expected to generate 1.11 times more return on investment than SP 500. However, Nasdaq is 1.11 times more volatile than S&P 500. It trades about 0.23 of its potential returns per unit of risk. S&P 500 is currently generating about 0.09 per unit of risk. If you would invest 743,385 in Nasdaq on May 25, 2018 and sell it today you would earn a total of 25,897 from holding Nasdaq or generate 3.48% return on investment over 30 days.