This module allows you to analyze existing cross correlation between DOW and VelocityShares 3x Long Crude Oil ETNs linked to the SP GSCI Crude Oil Index ER. You can compare the effects of market volatilities on DOW and VelocityShares 3x 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 VelocityShares 3x. See also your portfolio center. Please also check ongoing floating volatility patterns of DOW and VelocityShares 3x.
|Time Horizon||30 Days Login to change|
Given the investment horizon of 30 days, DOW is expected to generate 4.69 times less return on investment than VelocityShares 3x. But when comparing it to its historical volatility, DOW is 5.77 times less risky than VelocityShares 3x. It trades about 0.63 of its potential returns per unit of risk. VelocityShares 3x Long Crude Oil ETNs linked to the SP GSCI Crude Oil Index ER is currently generating about 0.51 of returns per unit of risk over similar time horizon. If you would invest 2,242 in VelocityShares 3x Long Crude Oil ETNs linked to the SP GSCI Crude Oil Index ER on December 23, 2017 and sell it today you would earn a total of 642 from holding VelocityShares 3x Long Crude Oil ETNs linked to the SP GSCI Crude Oil Index ER or generate 28.64% return on investment over 30 days.