This module allows you to analyze existing cross correlation between DOW and Verint Systems. You can compare the effects of market volatilities on DOW and Verint Systems 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 Verint Systems. See also your portfolio center. Please also check ongoing floating volatility patterns of DOW and Verint Systems.
Given the investment horizon of 30 days, DOW is expected to generate 4.51 times less return on investment than Verint Systems. But when comparing it to its historical volatility, DOW is 2.73 times less risky than Verint Systems. It trades about 0.12 of its potential returns per unit of risk. Verint Systems is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 4,545 in Verint Systems on June 22, 2018 and sell it today you would earn a total of 290.00 from holding Verint Systems or generate 6.38% return on investment over 30 days.
Overlapping area represents the amount of risk that can be diversified away by holding DOW and Verint Systems Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Verint Systems 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 Verint Systems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Verint Systems has no effect on the direction of DOW i.e. DOW and Verint Systems go up and down completely randomly.
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