Pair Correlation Between DOW and Embassy Bancorp

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

Pair Volatility

Given the investment horizon of 30 days, DOW is expected to generate 1.3 times less return on investment than Embassy Bancorp. But when comparing it to its historical volatility, DOW is 3.07 times less risky than Embassy Bancorp. It trades about 0.63 of its potential returns per unit of risk. Embassy Bancorp Inc is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest  1,580  in Embassy Bancorp Inc on December 24, 2017 and sell it today you would earn a total of  115  from holding Embassy Bancorp Inc or generate 7.28% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between DOW and Embassy Bancorp


Time Period1 Month [change]
StrengthVery Strong
ValuesDaily Returns


Almost no diversification

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

Comparative Volatility

 Predicted Return Density