Correlation Analysis Between DOW and NQTH

This module allows you to analyze existing cross correlation between DOW and NQTH. You can compare the effects of market volatilities on DOW and NQTH 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 DOW with a short position of NQTH. See also your portfolio center. Please also check ongoing floating volatility patterns of DOW and NQTH.
Horizon     30 Days    Login   to change

DOW  vs.  NQTH

 Performance (%) 

Pair Volatility

Given the investment horizon of 30 days, DOW is expected to generate 1.3 times more return on investment than NQTH. However, DOW is 1.3 times more volatile than NQTH. It trades about -0.05 of its potential returns per unit of risk. NQTH is currently generating about -0.07 per unit of risk. If you would invest  2,533,999  in DOW on November 12, 2018 and sell it today you would lose (71,595)  from holding DOW or give up 2.83% of portfolio value over 30 days.

Pair Corralation between DOW and NQTH

Time Period2 Months [change]
ValuesDaily Returns


DOW diversification synergy

Very weak diversification

Overlapping area represents the amount of risk that can be diversified away by holding DOW and NQTH in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on NQTH and DOW is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on DOW are associated (or correlated) with NQTH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NQTH has no effect on the direction of DOW i.e. DOW and NQTH go up and down completely randomly.

Comparative Volatility

 Predicted Return Density 

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See also your portfolio center. Please also try Cryptocurrency Correlation module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins and exchanges.