Pair Correlation Between DOW and Dover Downs

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

Pair Volatility

Given the investment horizon of 30 days, DOW is expected to generate 2.71 times less return on investment than Dover Downs. But when comparing it to its historical volatility, DOW is 4.86 times less risky than Dover Downs. It trades about 0.39 of its potential returns per unit of risk. Dover Downs Gaming Entertainment Inc is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest  92.12  in Dover Downs Gaming Entertainment Inc on November 11, 2017 and sell it today you would earn a total of  9.88  from holding Dover Downs Gaming Entertainment Inc or generate 10.73% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between DOW and Dover Downs
0.7

Parameters

Time Period1 Month [change]
DirectionPositive 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Diversification

Poor diversification

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

Comparative Volatility

 Predicted Return Density 
      Returns