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.
Horizon     30 Days    Login   to change
Compare Efficiency

Comparative Performance

 Predicted Return Density 

DOW  vs.  PIMCO 1 5 Year US TIPS ETF

 Performance (%) 

Pair Volatility

Given the investment horizon of 30 days, DOW is expected to under-perform the PIMCO 1. In addition to that, DOW is 10.85 times more volatile than PIMCO 1 5 Year US TIPS ETF. It trades about -0.11 of its total potential returns per unit of risk. PIMCO 1 5 Year US TIPS ETF is currently generating about -0.14 per unit of volatility. If you would invest  5,112  in PIMCO 1 5 Year US TIPS ETF on November 16, 2018 and sell it today you would lose (36.00)  from holding PIMCO 1 5 Year US TIPS ETF or give up 0.7% of portfolio value over 30 days.

Pair Corralation between DOW and PIMCO 1

Time Period2 Months [change]
StrengthVery Weak
ValuesDaily Returns

Diversification Opportunities for DOW and PIMCO 1

DOW diversification synergy

Modest diversification

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.

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