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.
|Time Horizon||30 Days Login to change|
Given the investment horizon of 30 days, DOW is expected to generate 1.25 times more return on investment than United States. However, DOW is 1.25 times more volatile than United States 12 Month Oil. It trades about -0.1 of its potential returns per unit of risk. United States 12 Month Oil is currently generating about -0.15 per unit of risk. If you would invest 2,621,460 in DOW on January 21, 2018 and sell it today you would lose (99,522) from holding DOW or give up 3.8% of portfolio value over 30 days.