Pair Correlation Between DOW and 500 com

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

Pair Volatility

Given the investment horizon of 30 days, DOW is expected to generate 0.13 times more return on investment than 500 com. However, DOW is 7.94 times less risky than 500 com. It trades about 0.84 of its potential returns per unit of risk. 500 com Limited is currently generating about -0.07 per unit of risk. If you would invest  2,229,609  in DOW on September 24, 2017 and sell it today you would earn a total of  103,254  from holding DOW or generate 4.63% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between DOW and 500 com
0.28

Parameters

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

Diversification

Modest diversification

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 com 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 com. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 500 com Limited has no effect on the direction of DOW i.e. DOW and 500 com go up and down completely randomly.
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Comparative Volatility

 Predicted Return Density 
      Returns