Pair Correlation Between DOW and DHX Media

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

Pair Volatility

Given the investment horizon of 30 days, DOW is expected to under-perform the DHX Media. But the index apears to be less risky and, when comparing its historical volatility, DOW is 1.44 times less risky than DHX Media. The index trades about -0.1 of its potential returns per unit of risk. The DHX Media Ltd is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest  360.00  in DHX Media Ltd on January 20, 2018 and sell it today you would lose (6.00)  from holding DHX Media Ltd or give up 1.67% of portfolio value over 30 days.

Correlation Coefficient

Pair Corralation between DOW and DHX Media
0.45

Parameters

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

Diversification

Very weak diversification

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

 Predicted Return Density 
      Returns