Pair Correlation Between PowerShares QQQ and iShares SP

This module allows you to analyze existing cross correlation between PowerShares QQQ ETF and iShares SP 500 Growth. You can compare the effects of market volatilities on PowerShares QQQ and iShares SP 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 SP. See also your portfolio center. Please also check ongoing floating volatility patterns of PowerShares QQQ and iShares SP.
Investment Horizon     30 Days    Login   to change
Symbolsvs
 PowerShares QQQ ETF  vs   iShares SP 500 Growth
 Performance (%) 
      Timeline 

Pair Volatility

Considering 30-days investment horizon, PowerShares QQQ ETF is expected to generate 1.64 times more return on investment than iShares SP. However, PowerShares QQQ is 1.64 times more volatile than iShares SP 500 Growth. It trades about 0.32 of its potential returns per unit of risk. iShares SP 500 Growth is currently generating about 0.49 per unit of risk. If you would invest  14,446  in PowerShares QQQ ETF on September 21, 2017 and sell it today you would earn a total of  438  from holding PowerShares QQQ ETF or generate 3.03% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between PowerShares QQQ and iShares SP
0.99

Parameters

Time Period1 Month [change]
DirectionPositive 
StrengthVery Strong
Accuracy100.0%
ValuesDaily Returns

Diversification

No risk reduction

Overlapping area represents the amount of risk that can be diversified away by holding PowerShares QQQ ETF and iShares SP 500 Growth in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on iShares SP 500 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 SP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares SP 500 has no effect on the direction of PowerShares QQQ i.e. PowerShares QQQ and iShares SP go up and down completely randomly.

Comparative Volatility

 Predicted Return Density 
      Returns 

PowerShares QQQ ETF

  
21 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in PowerShares QQQ ETF are ranked lower than 21 (%) of all global equities and portfolios over the last 30 days.

iShares SP 500

  
33 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in iShares SP 500 Growth are ranked lower than 33 (%) of all global equities and portfolios over the last 30 days.