Correlation Analysis Between Nasdaq and DOW

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

Nasdaq  vs.  DOW

 Performance (%) 
      Timeline 

Pair Volatility

Assuming 30 trading days horizon, Nasdaq is expected to generate 0.84 times more return on investment than DOW. However, Nasdaq is 1.2 times less risky than DOW. It trades about 0.24 of its potential returns per unit of risk. DOW is currently generating about -0.05 per unit of risk. If you would invest  742,443  in Nasdaq on May 24, 2018 and sell it today you would earn a total of  26,839  from holding Nasdaq or generate 3.61% return on investment over 30 days.

Pair Corralation between Nasdaq and DOW

0.0
Time Period1 Month [change]
DirectionFlat 
StrengthInsignificant
Accuracy96.77%
ValuesDaily Returns

Diversification

Pay attention

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

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