Correlation Analysis Between DOW and ETFS Bloomberg

This module allows you to analyze existing cross correlation between DOW and ETFS Bloomberg All Commodity Strt K 1 Fr. 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.
 Time Horizon     30 Days    Login   to change
Symbolsvs

DOW  vs.  ETFS Bloomberg All Commodity S

 Performance (%) 
      Timeline 

Pair Volatility

Given the investment horizon of 30 days, DOW is expected to generate 0.93 times more return on investment than ETFS Bloomberg. However, DOW is 1.08 times less risky than ETFS Bloomberg. It trades about -0.05 of its potential returns per unit of risk. ETFS Bloomberg All Commodity Strt K 1 Fr is currently generating about -0.33 per unit of risk. If you would invest  2,481,176  in DOW on May 24, 2018 and sell it today you would lose (23,087)  from holding DOW or give up 0.93% of portfolio value over 30 days.

Pair Corralation between DOW and ETFS Bloomberg

0.0
Time Period1 Month [change]
DirectionFlat 
StrengthInsignificant
Accuracy67.74%
ValuesDaily Returns

Diversification

Pay attention

Overlapping area represents the amount of risk that can be diversified away by holding DOW and ETFS Bloomberg All Commodity S 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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Comparative Volatility

 Predicted Return Density 
      Returns 

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See also your portfolio center. Please also try Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.