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.
|Investment Horizon||30 Days Login to change|
Given the investment horizon of 30 days, DOW is expected to generate 1.92 times less return on investment than Wells Fargo. But when comparing it to its historical volatility, DOW is 2.66 times less risky than Wells Fargo. It trades about 0.5 of its potential returns per unit of risk. Wells Fargo Company is currently generating about 0.36 of returns per unit of risk over similar time horizon. If you would invest 5,375 in Wells Fargo Company on November 15, 2017 and sell it today you would earn a total of 553 from holding Wells Fargo Company or generate 10.29% return on investment over 30 days.