This module allows you to analyze existing cross correlation between DOW and Wells Fargo Company. You can compare the effects of market volatilities on DOW and Wells Fargo 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 Wells Fargo. See also your portfolio center. Please also check ongoing floating volatility patterns of DOW and Wells Fargo.
|Time Horizon||30 Days Login to change|
Given the investment horizon of 30 days, DOW is expected to generate 0.85 times more return on investment than Wells Fargo. However, DOW is 1.18 times less risky than Wells Fargo. It trades about -0.04 of its potential returns per unit of risk. Wells Fargo Company is currently generating about -0.3 per unit of risk. If you would invest 2,521,938 in DOW on February 16, 2018 and sell it today you would lose (27,287) from holding DOW or give up 1.08% of portfolio value over 30 days.