Correlation Analysis Between DOW and VanEck Vectors

This module allows you to analyze existing cross correlation between DOW and VanEck Vectors Biotech ETF. You can compare the effects of market volatilities on DOW and VanEck Vectors 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 VanEck Vectors. See also your portfolio center. Please also check ongoing floating volatility patterns of DOW and VanEck Vectors.
Horizon     30 Days    Login   to change
Symbolsvs

DOW  vs.  VanEck Vectors Biotech ETF

 Performance (%) 
      Timeline 

Pair Volatility

Given the investment horizon of 30 days, DOW is expected to generate 0.67 times more return on investment than VanEck Vectors. However, DOW is 1.49 times less risky than VanEck Vectors. It trades about -0.15 of its potential returns per unit of risk. VanEck Vectors Biotech ETF is currently generating about -0.13 per unit of risk. If you would invest  2,640,576  in DOW on September 20, 2018 and sell it today you would lose (96,142)  from holding DOW or give up 3.64% of portfolio value over 30 days.

Pair Corralation between DOW and VanEck Vectors

0.83
Time Period1 Month [change]
DirectionPositive 
StrengthStrong
Accuracy95.83%
ValuesDaily Returns

Diversification

Very poor diversification

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

 Predicted Return Density 
      Returns 

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