This module allows you to analyze existing cross correlation between DOW and Dell Technologies. You can compare the effects of market volatilities on DOW and Dell Technologies 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 Dell Technologies. See also your portfolio center. Please also check ongoing floating volatility patterns of DOW and Dell Technologies.
Given the investment horizon of 30 days, DOW is expected to generate 0.68 times more return on investment than Dell Technologies. However, DOW is 1.47 times less risky than Dell Technologies. It trades about 0.43 of its potential returns per unit of risk. Dell Technologies is currently generating about 0.05 per unit of risk. If you would invest 2,565,698 in DOW on August 23, 2018 and sell it today you would earn a total of 108,652 from holding DOW or generate 4.23% return on investment over 30 days.
Pair Corralation between DOW and Dell Technologies
Overlapping area represents the amount of risk that can be diversified away by holding DOW and Dell Technologies Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Dell Technologies 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 Dell Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dell Technologies has no effect on the direction of DOW i.e. DOW and Dell Technologies go up and down completely randomly.
Build portfolios using Macroaxis predefined set of investing ideas. Many of Macroaxis investing ideas can easily outperform a given market. Ideas can also be optimized per your risk profile before portfolio origination is invoked.