Pair Correlation Between NQFI and DOW

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

Pair Volatility

Assuming 30 trading days horizon, NQFI is expected to under-perform the DOW. In addition to that, NQFI is 2.68 times more volatile than DOW. It trades about -0.24 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 NQFI and DOW
-0.46

Parameters

Time Period1 Month [change]
DirectionNegative 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Diversification

Very good diversification

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

 Predicted Return Density 
      Returns