Pair Correlation Between DOW and Joy Global

This module allows you to analyze existing cross correlation between DOW and Joy Global Inc. You can compare the effects of market volatilities on DOW and Joy Global 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 Joy Global. See also your portfolio center. Please also check ongoing floating volatility patterns of DOW and Joy Global.
Investment Horizon     30 Days    Login   to change
Symbolsvs
 DOW  vs   Joy Global Inc
 Performance (%) 
      Timeline 

Pair Volatility

If you would invest  2,316,304  in DOW on October 19, 2017 and sell it today you would earn a total of  29,532  from holding DOW or generate 1.27% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between DOW and Joy Global
0.16

Parameters

Time Period1 Month [change]
DirectionPositive 
StrengthInsignificant
Accuracy4.55%
ValuesDaily Returns

Diversification

Average diversification

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

 Predicted Return Density 
      Returns