Pair Correlation Between DOW and Short Duration

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

Pair Volatility

Given the investment horizon of 30 days, DOW is expected to generate 6.41 times more return on investment than Short Duration. However, DOW is 6.41 times more volatile than Short Duration TR Tactical ETF SPDR. It trades about 0.63 of its potential returns per unit of risk. Short Duration TR Tactical ETF SPDR is currently generating about -0.03 per unit of risk. If you would invest  2,474,621  in DOW on December 23, 2017 and sell it today you would earn a total of  132,551  from holding DOW or generate 5.36% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between DOW and Short Duration
-0.41

Parameters

Time Period1 Month [change]
DirectionNegative 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Diversification

Very good diversification

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

 Predicted Return Density 
      Returns