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