Pair Correlation Between NQEGT and DOW

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

Pair Volatility

Assuming 30 trading days horizon, NQEGT is expected to under-perform the DOW. In addition to that, NQEGT is 2.43 times more volatile than DOW. It trades about -0.08 of its total potential returns per unit of risk. DOW is currently generating about 0.05 per unit of volatility. If you would invest  2,327,396  in DOW on October 22, 2017 and sell it today you would earn a total of  8,428  from holding DOW or generate 0.36% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between NQEGT and DOW
0.59

Parameters

Time Period1 Month [change]
DirectionPositive 
StrengthWeak
Accuracy95.24%
ValuesDaily Returns

Diversification

Very weak diversification

Overlapping area represents the amount of risk that can be diversified away by holding NQEGT and DOW in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on DOW and NQEGT 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 NQEGT 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 NQEGT i.e. NQEGT and DOW go up and down completely randomly.
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Comparative Volatility

 Predicted Return Density 
      Returns