Pair Correlation Between DOW and United Parcel

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
 DOW  vs   United Parcel Service Inc
 Performance (%) 

Pair Volatility

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.

Correlation Coefficient

Pair Corralation between DOW and United Parcel


Time Period1 Month [change]
ValuesDaily Returns


Very poor diversification

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

Comparative Volatility

 Predicted Return Density