Pair Correlation Between DOW and United States

This module allows you to analyze existing cross correlation between DOW and United States 3x 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
Symbolsvs

DOW  vs.  United States 3x Oil

 Performance (%) 
      Timeline 

Pair Volatility

Given the investment horizon of 30 days, DOW is expected to under-perform the United States. But the index apears to be less risky and, when comparing its historical volatility, DOW is 3.6 times less risky than United States. The index trades about -0.02 of its potential returns per unit of risk. The United States 3x Oil is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest  4,787  in United States 3x Oil on March 21, 2018 and sell it today you would earn a total of  1,469  from holding United States 3x Oil or generate 30.68% return on investment over 30 days.

Pair Corralation between DOW and United States

-0.76
Time Period2 Months [change]
DirectionNegative 
StrengthWeak
Accuracy84.0%
ValuesDaily Returns

Diversification

Pay attention

Overlapping area represents the amount of risk that can be diversified away by holding DOW and United States 3x Oil in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on United States 3x 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 3x has no effect on the direction of DOW i.e. DOW and United States go up and down completely randomly.
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Comparative Volatility

 Predicted Return Density 
      Returns 

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