Correlation Analysis Between DOW and PIMCO 1

This module allows you to analyze existing cross correlation between DOW and PIMCO 1 5 Year US TIPS ETF. You can compare the effects of market volatilities on DOW and PIMCO 1 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 PIMCO 1. See also your portfolio center. Please also check ongoing floating volatility patterns of DOW and PIMCO 1.
 Time Horizon     30 Days    Login   to change
Symbolsvs

DOW  vs.  PIMCO 1 5 Year US TIPS ETF

 Performance (%) 
      Timeline 

Pair Volatility

Given the investment horizon of 30 days, DOW is expected to generate 4.54 times more return on investment than PIMCO 1. However, DOW is 4.54 times more volatile than PIMCO 1 5 Year US TIPS ETF. It trades about 0.06 of its potential returns per unit of risk. PIMCO 1 5 Year US TIPS ETF is currently generating about -0.02 per unit of risk. If you would invest  2,471,509  in DOW on May 20, 2018 and sell it today you would earn a total of  27,238  from holding DOW or generate 1.1% return on investment over 30 days.

Pair Corralation between DOW and PIMCO 1

0.0
Time Period1 Month [change]
DirectionFlat 
StrengthInsignificant
Accuracy64.52%
ValuesDaily Returns

Diversification

Pay attention

Overlapping area represents the amount of risk that can be diversified away by holding DOW and PIMCO 1 5 Year US TIPS ETF in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on PIMCO 1 5 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 PIMCO 1. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PIMCO 1 5 has no effect on the direction of DOW i.e. DOW and PIMCO 1 go up and down completely randomly.
    Optimize

Comparative Volatility

 Predicted Return Density 
      Returns 

My Equities

My Current Equities and Potential Positions
View AllNext
GOOG - USA Stock
Alphabet
Specialization
IT, Search Cloud And Integrated IT Services
Business Address1600 Amphitheatre Parkway
ExchangeNASDAQ
$1152.26

Thematic Opportunities

Explore Investment Opportunities
Build portfolios using Macroaxis predefined set of investing ideas. Many of Macroaxis investing ideas can easily outperform a given market. Ideas can also be optimized per your risk profile before portfolio origination is invoked.
Explore Thematic Ideas
Explore Investing Ideas  
See also your portfolio center. Please also try Portfolio Quick Import module to import or update all your transactions via one easy-to-use interface.