Correlation Analysis Between NYSE and DOW

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

NYSE  vs.  DOW

 Performance (%) 

Pair Volatility

Given the investment horizon of 30 days, NYSE is expected to under-perform the DOW. But the index apears to be less risky and, when comparing its historical volatility, NYSE is 1.11 times less risky than DOW. The index trades about -0.03 of its potential returns per unit of risk. The DOW is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest  2,533,999  in DOW on October 14, 2018 and sell it today you would lose (5,350)  from holding DOW or give up 0.21% of portfolio value over 30 days.

Pair Corralation between NYSE and DOW

Time Period1 Month [change]
StrengthVery Strong
ValuesDaily Returns


NYSE diversification synergy

Almost no diversification

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

Comparative Volatility

 Predicted Return Density 

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See also your portfolio center. Please also try Price Ceiling Movement module to calculate and plot price ceiling movement for different equity instruments.