Pair Correlation Between DOW and VASCO Data

This module allows you to analyze existing cross correlation between DOW and VASCO Data Security International Inc. You can compare the effects of market volatilities on DOW and VASCO Data 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 VASCO Data. See also your portfolio center. Please also check ongoing floating volatility patterns of DOW and VASCO Data.
 Time Horizon     30 Days    Login   to change
Symbolsvs
 DOW  vs   VASCO Data Security Internatio
 Performance (%) 
      Timeline 

Pair Volatility

Given the investment horizon of 30 days, DOW is expected to generate 0.63 times more return on investment than VASCO Data. However, DOW is 1.58 times less risky than VASCO Data. It trades about -0.1 of its potential returns per unit of risk. VASCO Data Security International Inc is currently generating about -0.28 per unit of risk. If you would invest  2,639,279  in DOW on January 25, 2018 and sell it today you would lose (108,280)  from holding DOW or give up 4.1% of portfolio value over 30 days.

Correlation Coefficient

Pair Corralation between DOW and VASCO Data
0.68

Parameters

Time Period1 Month [change]
DirectionPositive 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Diversification

Poor diversification

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

 Predicted Return Density 
      Returns