Correlation Analysis Between DOW and 500

This module allows you to analyze existing cross correlation between DOW and 500 Limited. You can compare the effects of market volatilities on DOW and 500 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 500. See also your portfolio center. Please also check ongoing floating volatility patterns of DOW and 500.
Horizon     30 Days    Login   to change

DOW  vs.  500 com Limited

 Performance (%) 

Pair Volatility

Given the investment horizon of 30 days, DOW is expected to generate 0.21 times more return on investment than 500. However, DOW is 4.77 times less risky than 500. It trades about 0.26 of its potential returns per unit of risk. 500 Limited is currently generating about -0.39 per unit of risk. If you would invest  2,582,229  in DOW on August 21, 2018 and sell it today you would earn a total of  58,347  from holding DOW or generate 2.26% return on investment over 30 days.

Pair Corralation between DOW and 500

Time Period1 Month [change]
ValuesDaily Returns


Pay attention

Overlapping area represents the amount of risk that can be diversified away by holding DOW and 500 com Limited in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on 500 Limited 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 500. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 500 Limited has no effect on the direction of DOW i.e. DOW and 500 go up and down completely randomly.

Comparative Volatility

 Predicted Return Density 

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See also your portfolio center. Please also try Volatility Analysis module to get historical volatility and risk analysis based on latest market data.