Pair Correlation Between DOW and Guggenheim Multi-Factor

This module allows you to analyze existing cross correlation between DOW and Guggenheim Multi-Factor Large Cap. You can compare the effects of market volatilities on DOW and Guggenheim Multi-Factor 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 Guggenheim Multi-Factor. See also your portfolio center. Please also check ongoing floating volatility patterns of DOW and Guggenheim Multi-Factor.
 Time Horizon     30 Days    Login   to change
 DOW  vs   Guggenheim Multi-Factor Large
 Performance (%) 

Pair Volatility

Given the investment horizon of 30 days, DOW is expected to generate 1.04 times less return on investment than Guggenheim Multi-Factor. But when comparing it to its historical volatility, DOW is 1.48 times less risky than Guggenheim Multi-Factor. It trades about 0.66 of its potential returns per unit of risk. Guggenheim Multi-Factor Large Cap is currently generating about 0.46 of returns per unit of risk over similar time horizon. If you would invest  2,714  in Guggenheim Multi-Factor Large Cap on December 20, 2017 and sell it today you would earn a total of  124  from holding Guggenheim Multi-Factor Large Cap or generate 4.57% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between DOW and Guggenheim Multi-Factor


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

Comparative Volatility

 Predicted Return Density