Correlation Analysis Between DOW and United States

This module allows you to analyze existing cross correlation between DOW and United States 12 Month Oil. You can compare the effects of market volatilities on DOW and United States 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 States. See also your portfolio center. Please also check ongoing floating volatility patterns of DOW and United States.
Horizon     30 Days    Login   to change

DOW  vs.  United States 12 Month Oil

 Performance (%) 

Pair Volatility

Given the investment horizon of 30 days, DOW is expected to generate 1.1 times less return on investment than United States. But when comparing it to its historical volatility, DOW is 2.55 times less risky than United States. It trades about 0.38 of its potential returns per unit of risk. United States 12 Month Oil is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest  2,483  in United States 12 Month Oil on August 22, 2018 and sell it today you would earn a total of  100.00  from holding United States 12 Month Oil or generate 4.03% return on investment over 30 days.

Pair Corralation between DOW and United States

Time Period1 Month [change]
ValuesDaily Returns


Poor diversification

Overlapping area represents the amount of risk that can be diversified away by holding DOW and United States 12 Month Oil in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on United States 12 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 States. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United States 12 has no effect on the direction of DOW i.e. DOW and United States go up and down completely randomly.

Comparative Volatility

 Predicted Return Density 

My Equities

My Current Equities and Potential Positions

View AllNext
GOOG - USA Stock
IT, Search Cloud And Integrated IT Services
Business Address1600 Amphitheatre Parkway

Thematic Opportunities

Explore Investment Opportunities

Build portfolios using Macroaxis predefined set of investing ideas. Many of Macroaxis investing ideas can easily outperform a given market. Ideas can also be optimized per your risk profile before portfolio origination is invoked.
Explore Thematic Ideas
Explore Investing Ideas  
See also your portfolio center. Please also try Portfolio Reporting module to create custom reports across your portfolios and generate quick suggestion pitch.