Correlation Analysis Between DOW and Virtus LifeSci

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

DOW  vs.  Virtus LifeSci Biotech Product

 Performance (%) 
      Timeline 

Pair Volatility

Given the investment horizon of 30 days, DOW is expected to generate 0.65 times more return on investment than Virtus LifeSci. However, DOW is 1.54 times less risky than Virtus LifeSci. It trades about -0.19 of its potential returns per unit of risk. Virtus LifeSci Biotech Products ETF is currently generating about -0.32 per unit of risk. If you would invest  2,656,205  in DOW on September 22, 2018 and sell it today you would lose (111,771)  from holding DOW or give up 4.21% of portfolio value over 30 days.

Pair Corralation between DOW and Virtus LifeSci

0.86
Time Period1 Month [change]
DirectionPositive 
StrengthStrong
Accuracy100.0%
ValuesDaily Returns

Diversification

Very poor diversification

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

 Predicted Return Density 
      Returns 

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