This module allows you to analyze existing cross correlation between Nasdaq and Russell 2000 . You can compare the effects of market volatilities on Nasdaq and Russell 2000 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 Russell 2000. See also your portfolio center. Please also check ongoing floating volatility patterns of Nasdaq and Russell 2000.
|Investment Horizon||30 Days Login to change|
Assuming 30 trading days horizon, Nasdaq is expected to generate 1.0 times more return on investment than Russell 2000. However, Nasdaq is 1.0 times more volatile than Russell 2000 . It trades about 0.22 of its potential returns per unit of risk. Russell 2000 is currently generating about 0.03 per unit of risk. If you would invest 658,683 in Nasdaq on October 23, 2017 and sell it today you would earn a total of 19,596 from holding Nasdaq or generate 2.98% return on investment over 30 days.