Correlation Analysis Between DOW and PowerShares Multi-Factor

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

DOW  vs.  PowerShares Multi-Factor Large

 Performance (%) 

Pair Volatility

Given the investment horizon of 30 days, DOW is expected to generate 1.11 times more return on investment than PowerShares Multi-Factor. However, DOW is 1.11 times more volatile than PowerShares Multi-Factor Large Cap Portfolio. It trades about -0.15 of its potential returns per unit of risk. PowerShares Multi-Factor Large Cap Portfolio is currently generating about -0.3 per unit of risk. If you would invest  2,640,576  in DOW on September 19, 2018 and sell it today you would lose (96,142)  from holding DOW or give up 3.64% of portfolio value over 30 days.

Pair Corralation between DOW and PowerShares Multi-Factor

Time Period1 Month [change]
ValuesDaily Returns


Very weak diversification

Overlapping area represents the amount of risk that can be diversified away by holding DOW and PowerShares Multi-Factor Large in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on PowerShares 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 PowerShares 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 PowerShares Multi-Factor has no effect on the direction of DOW i.e. DOW and PowerShares Multi-Factor go up and down completely randomly.

Comparative Volatility

 Predicted Return Density 

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