Pair Correlation Between DOW and Edwards Lifesciences

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

Pair Volatility

Given the investment horizon of 30 days, DOW is expected to generate 1.68 times less return on investment than Edwards Lifesciences. But when comparing it to its historical volatility, DOW is 3.23 times less risky than Edwards Lifesciences. It trades about 0.5 of its potential returns per unit of risk. Edwards Lifesciences Corporation is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest  10,498  in Edwards Lifesciences Corporation on November 15, 2017 and sell it today you would earn a total of  933  from holding Edwards Lifesciences Corporation or generate 8.89% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between DOW and Edwards Lifesciences


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 Edwards Lifesciences Corp. in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Edwards Lifesciences 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 Edwards Lifesciences. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Edwards Lifesciences has no effect on the direction of DOW i.e. DOW and Edwards Lifesciences go up and down completely randomly.

Comparative Volatility

 Predicted Return Density