Pair Correlation Between DOW and Barclays Bank

This module allows you to analyze existing cross correlation between DOW and Barclays Bank PLC iPath Series B Bloomberg Natural Gas Subindex Total Return ETN. You can compare the effects of market volatilities on DOW and Barclays Bank 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 Barclays Bank. See also your portfolio center. Please also check ongoing floating volatility patterns of DOW and Barclays Bank.
 Time Horizon     30 Days    Login   to change
Symbolsvs
 DOW  vs   Barclays Bank PLC iPath Series
 Performance (%) 
      Timeline 

Pair Volatility

Given the investment horizon of 30 days, DOW is expected to generate 2.95 times less return on investment than Barclays Bank. But when comparing it to its historical volatility, DOW is 6.82 times less risky than Barclays Bank. It trades about 0.66 of its potential returns per unit of risk. Barclays Bank PLC iPath Series B Bloomberg Natural Gas Subindex Total Return ETN is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest  3,695  in Barclays Bank PLC iPath Series B Bloomberg Natural Gas Subindex Total Return ETN on December 20, 2017 and sell it today you would earn a total of  478  from holding Barclays Bank PLC iPath Series B Bloomberg Natural Gas Subindex Total Return ETN or generate 12.94% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between DOW and Barclays Bank
-0.18

Parameters

Time Period1 Month [change]
DirectionNegative 
StrengthInsignificant
Accuracy78.95%
ValuesDaily Returns

Diversification

Good diversification

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

 Predicted Return Density 
      Returns