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.
 Time Horizon     30 Days    Login   to change

DOW  vs.  500 com Limited

 Performance (%) 

Pair Volatility

Given the investment horizon of 30 days, DOW is not expected to generate positive returns. However, DOW is 7.98 times less risky than 500. It waists most of its returns potential to compensate for thr risk taken. 500 is generating about -0.09 per unit of risk. If you would invest  2,471,509  in DOW on May 20, 2018 and sell it today you would lose (1,475)  from holding DOW or give up 0.06% of portfolio value 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 Pair Correlation module to compare performance and examine historical correlation between any two equity instruments.