Pair Correlation Between DOW and GMFL

This module allows you to analyze existing cross correlation between DOW and GMFL. You can compare the effects of market volatilities on DOW and GMFL 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 GMFL. See also your portfolio center. Please also check ongoing floating volatility patterns of DOW and GMFL.
 Time Horizon     30 Days    Login   to change
Symbolsvs

DOW  vs.  GMFL

 Performance (%) 
      Timeline 

Pair Volatility

Given the investment horizon of 30 days, DOW is expected to under-perform the GMFL. In addition to that, DOW is 1.44 times more volatile than GMFL. It trades about -0.02 of its total potential returns per unit of risk. GMFL is currently generating about 0.06 per unit of volatility. If you would invest  2,723  in GMFL on March 22, 2018 and sell it today you would earn a total of  20.00  from holding GMFL or generate 0.73% return on investment over 30 days.

Pair Corralation between DOW and GMFL

0.17
Time Period2 Months [change]
DirectionPositive 
StrengthInsignificant
Accuracy28.0%
ValuesDaily Returns

Diversification

Average diversification

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

 Predicted Return Density 
      Returns 

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GOOG - USA Stock
Alphabet
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IT, Search Cloud And Integrated IT Services
Business Address1600 Amphitheatre Parkway
ExchangeNASDAQ
$1072.96

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