Correlation Analysis Between DOW and USAA Core

This module allows you to analyze existing cross correlation between DOW and USAA Core Intermediate Term Bond ETF. You can compare the effects of market volatilities on DOW and USAA Core 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 USAA Core. See also your portfolio center. Please also check ongoing floating volatility patterns of DOW and USAA Core.
Horizon     30 Days    Login   to change
Compare Efficiency

Comparative Performance

 Predicted Return Density 

DOW  vs.  USAA Core Intermediate Term Bo

 Performance (%) 

Pair Volatility

Given the investment horizon of 30 days, DOW is expected to under-perform the USAA Core. In addition to that, DOW is 8.45 times more volatile than USAA Core Intermediate Term Bond ETF. It trades about -0.11 of its total potential returns per unit of risk. USAA Core Intermediate Term Bond ETF is currently generating about -0.01 per unit of volatility. If you would invest  4,796  in USAA Core Intermediate Term Bond ETF on November 15, 2018 and sell it today you would lose (5.50)  from holding USAA Core Intermediate Term Bond ETF or give up 0.11% of portfolio value over 30 days.

Pair Corralation between DOW and USAA Core

Time Period2 Months [change]
StrengthVery Weak
ValuesDaily Returns

Diversification Opportunities for DOW and USAA Core

DOW diversification synergy

Weak diversification

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

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