Pair Correlation Between DOW and Natus Medical

This module allows you to analyze existing cross correlation between DOW and Natus Medical Incorporated. You can compare the effects of market volatilities on DOW and Natus Medical 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 Natus Medical. See also your portfolio center. Please also check ongoing floating volatility patterns of DOW and Natus Medical.
Investment Horizon     30 Days    Login   to change
Symbolsvs
 DOW  vs   Natus Medical Incorporated
 Performance (%) 
      Timeline 

Pair Volatility

Given the investment horizon of 30 days, DOW is expected to generate 0.25 times more return on investment than Natus Medical. However, DOW is 3.93 times less risky than Natus Medical. It trades about 0.41 of its potential returns per unit of risk. Natus Medical Incorporated is currently generating about -0.07 per unit of risk. If you would invest  2,343,970  in DOW on November 13, 2017 and sell it today you would earn a total of  106,510  from holding DOW or generate 4.54% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between DOW and Natus Medical
-0.28

Parameters

Time Period1 Month [change]
DirectionNegative 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Diversification

Very good diversification

Overlapping area represents the amount of risk that can be diversified away by holding DOW and Natus Medical Incorporated in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Natus Medical Incorp 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 Natus Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Natus Medical Incorp has no effect on the direction of DOW i.e. DOW and Natus Medical go up and down completely randomly.
    Optimize

Comparative Volatility

 Predicted Return Density 
      Returns