This module allows you to analyze existing cross correlation between PowerShares QQQ ETF and iShares Core SP US Growth. 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
PowerShares QQQ ETF vs iShares Core SP US Growth
Considering 30-days investment horizon, PowerShares QQQ ETF is expected to generate 1.09 times more return on investment than iShares Core. However, PowerShares QQQ is 1.09 times more volatile than iShares Core SP US Growth. It trades about -0.01 of its potential returns per unit of risk. iShares Core SP US Growth is currently generating about -0.02 per unit of risk. If you would invest 16,582 in PowerShares QQQ ETF on January 18, 2018 and sell it today you would lose (86.00) from holding PowerShares QQQ ETF or give up 0.52% of portfolio value over 30 days.
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No risk reduction
Overlapping area represents the amount of risk that can be diversified away by holding PowerShares QQQ ETF and iShares Core SP US Growth 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.
Over the last 30 days PowerShares QQQ ETF has generated negative risk-adjusted returns adding no value to investors with long positions.
Over the last 30 days iShares Core SP US Growth has generated negative risk-adjusted returns adding no value to investors with long positions.