This module allows you to analyze existing cross correlation between DOW and United Parcel Service Inc. You can compare the effects of market volatilities on DOW and United Parcel 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 United Parcel. See also your portfolio center. Please also check ongoing floating volatility patterns of DOW and United Parcel.
|Time Horizon||30 Days Login to change|
Given the investment horizon of 30 days, DOW is expected to generate 1.92 times less return on investment than United Parcel. But when comparing it to its historical volatility, DOW is 2.65 times less risky than United Parcel. It trades about 0.67 of its potential returns per unit of risk. United Parcel Service Inc is currently generating about 0.48 of returns per unit of risk over similar time horizon. If you would invest 11,826 in United Parcel Service Inc on December 24, 2017 and sell it today you would earn a total of 1,366 from holding United Parcel Service Inc or generate 11.55% return on investment over 30 days.