Pair Correlation Between DOW and CDK Global

This module allows you to analyze existing cross correlation between DOW and CDK Global Inc. You can compare the effects of market volatilities on DOW and CDK Global 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 CDK Global. See also your portfolio center. Please also check ongoing floating volatility patterns of DOW and CDK Global.
 Time Horizon     30 Days    Login   to change
 DOW  vs   CDK Global Inc
 Performance (%) 

Pair Volatility

Given the investment horizon of 30 days, DOW is expected to generate 38.9 times less return on investment than CDK Global. But when comparing it to its historical volatility, DOW is 1.02 times less risky than CDK Global. It trades about 0.0 of its potential returns per unit of risk. CDK Global Inc is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  6,906  in CDK Global Inc on February 17, 2018 and sell it today you would earn a total of  48.00  from holding CDK Global Inc or generate 0.7% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between DOW and CDK Global


Time Period1 Month [change]
ValuesDaily Returns


Average diversification

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

Comparative Volatility

 Predicted Return Density