Pair Correlation Between DOW and iPath B

This module allows you to analyze existing cross correlation between DOW and iPath B SP GSCI Crude Oil TR ETN. You can compare the effects of market volatilities on DOW and iPath B 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 iPath B. See also your portfolio center. Please also check ongoing floating volatility patterns of DOW and iPath B.
 Time Horizon     30 Days    Login   to change
 DOW  vs   iPath B SP GSCI Crude Oil TR E
 Performance (%) 

Pair Volatility

Given the investment horizon of 30 days, DOW is expected to under-perform the iPath B. But the index apears to be less risky and, when comparing its historical volatility, DOW is 1.77 times less risky than iPath B. The index trades about -0.05 of its potential returns per unit of risk. The iPath B SP GSCI Crude Oil TR ETN is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  5,912  in iPath B SP GSCI Crude Oil TR ETN on February 15, 2018 and sell it today you would earn a total of  267.00  from holding iPath B SP GSCI Crude Oil TR ETN or generate 4.52% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between DOW and iPath B


Time Period1 Month [change]
StrengthVery Weak
ValuesDaily Returns


Weak diversification

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

Comparative Volatility

 Predicted Return Density