Correlation Analysis Between DOW and ETFS Bloomberg

This module allows you to analyze existing cross correlation between DOW and ETFS Bloomberg All CmdtyLngrDtdStrtK 1Fr. You can compare the effects of market volatilities on DOW and ETFS Bloomberg 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 ETFS Bloomberg. See also your portfolio center. Please also check ongoing floating volatility patterns of DOW and ETFS Bloomberg.
Horizon     30 Days    Login   to change
Compare Efficiency

Comparative Performance

 Predicted Return Density 

DOW  vs.  ETFS Bloomberg All CmdtyLngrDt

 Performance (%) 

Pair Volatility

Given the investment horizon of 30 days, DOW is expected to generate 2.41 times more return on investment than ETFS Bloomberg. However, DOW is 2.41 times more volatile than ETFS Bloomberg All CmdtyLngrDtdStrtK 1Fr. It trades about 0.03 of its potential returns per unit of risk. ETFS Bloomberg All CmdtyLngrDtdStrtK 1Fr is currently generating about -0.02 per unit of risk. If you would invest  2,428,595  in DOW on December 22, 2018 and sell it today you would earn a total of  42,040  from holding DOW or generate 1.73% return on investment over 30 days.

Pair Corralation between DOW and ETFS Bloomberg

Time Period2 Months [change]
ValuesDaily Returns

Diversification Opportunities for DOW and ETFS Bloomberg

DOW diversification synergy

Very poor diversification

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

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See also your portfolio center. Please also try Fundamentals Matrix module to view fundamentals matrix and analyze how accounts are interrelated and interconnected with each other.