Correlation Analysis 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 generate 0.7 times more return on investment than First Trust. However, DOW is 1.43 times less risky than First Trust. It trades about 0.1 of its potential returns per unit of risk. First Trust Japan AlphaDEX ETF is currently generating about -0.08 per unit of risk. If you would invest 2,465,780 in DOW on June 20, 2018 and sell it today you would earn a total of 40,670 from holding DOW or generate 1.65% return on investment over 30 days.
Pair Corralation between DOW and First Trust
0.1
| Time Period | 1 Month [change] |
| Direction | Positive |
| Strength | Insignificant |
| Accuracy | 75.86% |
| Values | Daily Returns |
Diversification
Average 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
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My Current Equities and Potential Positions
Thematic Opportunities
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See also your portfolio center. Please also try Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.