Correlation Analysis Between DOW and CA

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

DOW  vs.  CA

 Performance (%) 
      Timeline 

Pair Volatility

Given the investment horizon of 30 days, DOW is expected to generate 2.85 times more return on investment than CA. However, DOW is 2.85 times more volatile than CA. It trades about 0.32 of its potential returns per unit of risk. CA is currently generating about 0.35 per unit of risk. If you would invest  2,573,360  in DOW on August 22, 2018 and sell it today you would earn a total of  67,216  from holding DOW or generate 2.61% return on investment over 30 days.

Pair Corralation between DOW and CA

-0.67
Time Period1 Month [change]
DirectionNegative 
StrengthWeak
Accuracy95.45%
ValuesDaily Returns

Diversification

Excellent diversification

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

 Predicted Return Density 
      Returns 

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GOOG - USA Stock
Alphabet
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IT, Search Cloud And Integrated IT Services
Business Address1600 Amphitheatre Parkway
ExchangeNASDAQ
$1161.22

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