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.
Investment 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 generate 0.05 times more return on investment than DHX Media. However, DOW is 18.82 times less risky than DHX Media. It trades about 0.65 of its potential returns per unit of risk. DHX Media Ltd is currently generating about -0.42 per unit of risk. If you would invest  2,235,923  in DOW on September 21, 2017 and sell it today you would earn a total of  80,381  from holding DOW or generate 3.59% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between DOW and DHX Media
-0.8

Parameters

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

Diversification

Pay attention

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