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This module allows you to analyze existing cross correlation between DOW and First Trust South Korea 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.
|Horizon||30 Days Login to change|
Predicted Return Density
DOW vs. First Trust South Korea AlphaD
Given the investment horizon of 30 days, DOW is expected to under-perform the First Trust. In addition to that, DOW is 1.86 times more volatile than First Trust South Korea AlphaDEX ETF. It trades about -0.01 of its total potential returns per unit of risk. First Trust South Korea AlphaDEX ETF is currently generating about 0.03 per unit of volatility. If you would invest 2,277 in First Trust South Korea AlphaDEX ETF on December 19, 2018 and sell it today you would earn a total of 23.00 from holding First Trust South Korea AlphaDEX ETF or generate 1.01% return on investment over 30 days.
Pair Corralation between DOW and First Trust
|Time Period||2 Months [change]|
Diversification Opportunities for DOW and First Trust
Overlapping area represents the amount of risk that can be diversified away by holding DOW and First Trust South Korea AlphaD in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on First Trust South 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 South has no effect on the direction of DOW i.e. DOW and First Trust go up and down completely randomly.