Pair Correlation Between DOW and iShares Short

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

DOW  vs.  iShares Short Maturity Bond ET

 Performance (%) 

Pair Volatility

Given the investment horizon of 30 days, DOW is expected to under-perform the iShares Short. In addition to that, DOW is 37.08 times more volatile than iShares Short Maturity Bond ETF. It trades about -0.07 of its total potential returns per unit of risk. iShares Short Maturity Bond ETF is currently generating about 0.04 per unit of volatility. If you would invest  5,013  in iShares Short Maturity Bond ETF on March 26, 2018 and sell it today you would earn a total of  4.00  from holding iShares Short Maturity Bond ETF or generate 0.08% return on investment over 30 days.

Pair Corralation between DOW and iShares Short

Time Period2 Months [change]
ValuesDaily Returns


Very weak diversification

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

Comparative Volatility

 Predicted Return Density 

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