This module allows you to analyze existing cross correlation between NYSE and DOW. You can compare the effects of market volatilities on NYSE and DOW 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 NYSE with a short position of DOW. See also your portfolio center. Please also check ongoing floating volatility patterns of NYSE and DOW.
|Investment Horizon||30 Days Login to change|
Given the investment horizon of 30 days, NYSE is expected to under-perform the DOW. But the index apears to be less risky and, when comparing its historical volatility, NYSE is 1.27 times less risky than DOW. The index trades about -0.11 of its potential returns per unit of risk. The DOW is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 2,327,396 in DOW on October 21, 2017 and sell it today you would earn a total of 8,428 from holding DOW or generate 0.36% return on investment over 30 days.