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|
Given the investment horizon of 30 days, DOW is expected to generate 6.75 times more return on investment than PIMCO 1. However, DOW is 6.75 times more volatile than PIMCO 1 5 Year US TIPS ETF. It trades about 0.55 of its potential returns per unit of risk. PIMCO 1 5 Year US TIPS ETF is currently generating about 0.15 per unit of risk. If you would invest 2,479,220 in DOW on December 18, 2017 and sell it today you would earn a total of 101,099 from holding DOW or generate 4.08% return on investment over 30 days.