Pair Correlation Between DOW and First Trust |
This module allows you to analyze existing cross correlation between DOW and First Trust Japan AlphaDEX ETF. You can compare the effects of market volatilities on DOW and First Trust 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 First Trust. See also your portfolio center. Please also check ongoing floating volatility patterns of DOW and First Trust.
Time Horizon | 30 Days Login to change |
Symbols | vs |
DOW vs. First Trust Japan AlphaDEX ETF
Pair Volatility
Given the investment horizon of 30 days, DOW is expected to under-perform the First Trust. In addition to that, DOW is 1.33 times more volatile than First Trust Japan AlphaDEX ETF. It trades about -0.09 of its total potential returns per unit of risk. First Trust Japan AlphaDEX ETF is currently generating about -0.06 per unit of volatility. If you would invest 6,065 in First Trust Japan AlphaDEX ETF on March 27, 2018 and sell it today you would lose (178.00) from holding First Trust Japan AlphaDEX ETF or give up 2.93% of portfolio value over 30 days.
Pair Corralation between DOW and First Trust
-0.17
Time Period | 2 Months [change] |
Direction | Negative |
Strength | Insignificant |
Accuracy | 87.76% |
Values | Daily Returns |
Diversification
Good diversification
Overlapping area represents the amount of risk that can be diversified away by holding DOW and First Trust Japan AlphaDEX ETF in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on First Trust Japan 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 First Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Trust Japan has no effect on the direction of DOW i.e. DOW and First Trust go up and down completely randomly.
Comparative Volatility
First Trust Japan AlphaDEX ETF
Pair trading matchups for First Trust
My Equities
My Current Equities and Potential Positions
Thematic Opportunities
Explore Investment Opportunities
See also your portfolio center. Please also try Watchlist Optimization module to optimize watchlists to build efficient portfolio or rebalance existing positions based on mean-variance optimization algorithm.