Correlation Analysis Between DOW and Gartner

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

DOW  vs.  Gartner Inc

 Performance (%) 
      Timeline 

Pair Volatility

Given the investment horizon of 30 days, DOW is expected to generate 1.42 times less return on investment than Gartner. But when comparing it to its historical volatility, DOW is 1.59 times less risky than Gartner. It trades about 0.12 of its potential returns per unit of risk. Gartner is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest  13,720  in Gartner on June 19, 2018 and sell it today you would earn a total of  293.00  from holding Gartner or generate 2.14% return on investment over 30 days.

Pair Corralation between DOW and Gartner

-0.69
Time Period1 Month [change]
DirectionNegative 
StrengthWeak
Accuracy75.86%
ValuesDaily Returns

Diversification

Excellent diversification

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

 Predicted Return Density 
      Returns 

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GOOG - USA Stock
Alphabet
Specialization
IT, Search Cloud And Integrated IT Services
Business Address1600 Amphitheatre Parkway
ExchangeNASDAQ
$1195.88

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See also your portfolio center. Please also try Pair Correlation module to compare performance and examine historical correlation between any two equity instruments.