Correlation Analysis Between PowerShares QQQ and iShares Core

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

PowerShares QQQ ETF  vs.  iShares Core SP US Growth ETF

 Performance (%) 
      Timeline 

Pair Volatility

Considering 30-days investment horizon, PowerShares QQQ ETF is expected to generate 1.03 times more return on investment than iShares Core. However, PowerShares QQQ is 1.03 times more volatile than iShares Core SP US Growth ETF. It trades about 0.31 of its potential returns per unit of risk. iShares Core SP US Growth ETF is currently generating about 0.18 per unit of risk. If you would invest  16,960  in PowerShares QQQ ETF on May 23, 2018 and sell it today you would earn a total of  682.00  from holding PowerShares QQQ ETF or generate 4.02% return on investment over 30 days.

Pair Corralation between PowerShares QQQ and iShares Core

0.98
Time Period1 Month [change]
DirectionPositive 
StrengthVery Strong
Accuracy95.45%
ValuesDaily Returns

Diversification

Almost no diversification

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

Comparative Volatility

 Predicted Return Density 
      Returns 
PowerShares QQQ ETF  
20 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in PowerShares QQQ ETF are ranked lower than 20 (%) of all global equities and portfolios over the last 30 days.
iShares Core SP  
11 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in iShares Core SP US Growth ETF are ranked lower than 11 (%) of all global equities and portfolios over the last 30 days.

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