This module allows you to analyze existing cross correlation between DOW and DXP Enterprises. You can compare the effects of market volatilities on DOW and DXP Enterprises 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 DXP Enterprises. See also your portfolio center
. Please also check ongoing floating volatility patterns of DOW
and DXP Enterprises
DOW vs. DXP Enterprises Inc
Given the investment horizon of 30 days, DOW is expected to generate 7.35 times less return on investment than DXP Enterprises. But when comparing it to its historical volatility, DOW is 3.22 times less risky than DXP Enterprises. It trades about 0.05 of its potential returns per unit of risk. DXP Enterprises is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 4,067 in DXP Enterprises on June 18, 2018 and sell it today you would earn a total of 178.00 from holding DXP Enterprises or generate 4.38% return on investment over 30 days.
Pair Corralation between DOW and DXP Enterprises
|Time Period||1 Month [change]|
Overlapping area represents the amount of risk that can be diversified away by holding DOW and DXP Enterprises Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on DXP Enterprises 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 DXP Enterprises. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DXP Enterprises has no effect on the direction of DOW i.e. DOW and DXP Enterprises go up and down completely randomly.
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