Pair Correlation Between DOW and Mentor Graphics

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

Pair Volatility

If you would invest  2,343,970  in DOW on November 11, 2017 and sell it today you would earn a total of  88,946  from holding DOW or generate 3.79% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between DOW and Mentor Graphics
0.71

Parameters

Time Period1 Month [change]
DirectionPositive 
StrengthSignificant
Accuracy5.0%
ValuesDaily Returns

Diversification

Poor diversification

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

 Predicted Return Density 
      Returns