This module allows you to analyze existing cross correlation between Nasdaq and MerVal. You can compare the effects of market volatilities on Nasdaq and MerVal 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 MerVal. See also your portfolio center. Please also check ongoing floating volatility patterns of Nasdaq and MerVal.
|Time Horizon||30 Days Login to change|
Assuming 30 trading days horizon, Nasdaq is expected to generate 0.68 times more return on investment than MerVal. However, Nasdaq is 1.47 times less risky than MerVal. It trades about -0.06 of its potential returns per unit of risk. MerVal is currently generating about -0.15 per unit of risk. If you would invest 750,577 in Nasdaq on January 26, 2018 and sell it today you would lose (16,838) from holding Nasdaq or give up 2.24% of portfolio value over 30 days.