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.
Investment 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 2.03 times less return on investment than VASCO Data. But when comparing it to its historical volatility, DOW is 6.42 times less risky than VASCO Data. It trades about 0.56 of its potential returns per unit of risk. VASCO Data Security International Inc is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest  1,170  in VASCO Data Security International Inc on September 17, 2017 and sell it today you would earn a total of  65  from holding VASCO Data Security International Inc or generate 5.56% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between DOW and VASCO Data
0.92

Parameters

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

Diversification

Almost no 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.
    Optimize

Comparative Volatility

 Predicted Return Density 
      Returns