Pair Correlation Between IPC and Russell 2000

This module allows you to analyze existing cross correlation between IPC and Russell 2000 . You can compare the effects of market volatilities on IPC and Russell 2000 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 IPC with a short position of Russell 2000. See also your portfolio center. Please also check ongoing floating volatility patterns of IPC and Russell 2000.
 Time Horizon     30 Days    Login   to change
 IPC  vs   Russell 2000
 Performance (%) 

Pair Volatility

Given the investment horizon of 30 days, IPC is expected to under-perform the Russell 2000. But the index apears to be less risky and, when comparing its historical volatility, IPC is 1.54 times less risky than Russell 2000. The index trades about -0.12 of its potential returns per unit of risk. The Russell 2000 is currently generating about -0.07 of returns per unit of risk over similar time horizon. If you would invest  157,673  in Russell 2000 on January 18, 2018 and sell it today you would lose (3,318)  from holding Russell 2000 or give up 2.1% of portfolio value over 30 days.

Correlation Coefficient

Pair Corralation between IPC and Russell 2000


Time Period1 Month [change]
ValuesDaily Returns


Poor diversification

Overlapping area represents the amount of risk that can be diversified away by holding IPC and Russell 2000 in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Russell 2000 and IPC 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 IPC are associated (or correlated) with Russell 2000. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Russell 2000 has no effect on the direction of IPC i.e. IPC and Russell 2000 go up and down completely randomly.

Comparative Volatility

 Predicted Return Density