Pair Correlation Between DOW and iPath Pure

This module allows you to analyze existing cross correlation between DOW and iPath Pure Beta Broad Commodity ETN. You can compare the effects of market volatilities on DOW and iPath Pure 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 iPath Pure. See also your portfolio center. Please also check ongoing floating volatility patterns of DOW and iPath Pure.
 Time Horizon     30 Days    Login   to change
Symbolsvs

DOW  vs.  iPath Pure Beta Broad Commodit

 Performance (%) 
      Timeline 

Pair Volatility

Given the investment horizon of 30 days, DOW is expected to under-perform the iPath Pure. In addition to that, DOW is 2.01 times more volatile than iPath Pure Beta Broad Commodity ETN. It trades about -0.01 of its total potential returns per unit of risk. iPath Pure Beta Broad Commodity ETN is currently generating about 0.16 per unit of volatility. If you would invest  2,943  in iPath Pure Beta Broad Commodity ETN on March 20, 2018 and sell it today you would earn a total of  135.48  from holding iPath Pure Beta Broad Commodity ETN or generate 4.6% return on investment over 30 days.

Pair Corralation between DOW and iPath Pure

-0.82
Time Period2 Months [change]
DirectionNegative 
StrengthSignificant
Accuracy85.71%
ValuesDaily Returns

Diversification

Pay attention

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

 Predicted Return Density 
      Returns 

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