Pair Correlation Between PowerShares QQQ and iShares Russell

This module allows you to analyze existing cross correlation between PowerShares QQQ ETF and iShares Russell 1000 Growth. You can compare the effects of market volatilities on PowerShares QQQ and iShares Russell 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 Russell. See also your portfolio center. Please also check ongoing floating volatility patterns of PowerShares QQQ and iShares Russell.
Investment Horizon     30 Days    Login   to change
Symbolsvs
 PowerShares QQQ ETF  vs   iShares Russell 1000 Growth
 Performance (%) 
      Timeline 

Pair Volatility

Considering 30-days investment horizon, PowerShares QQQ is expected to generate 1.55 times less return on investment than iShares Russell. In addition to that, PowerShares QQQ is 1.35 times more volatile than iShares Russell 1000 Growth. It trades about 0.14 of its total potential returns per unit of risk. iShares Russell 1000 Growth is currently generating about 0.29 per unit of volatility. If you would invest  13,137  in iShares Russell 1000 Growth on November 16, 2017 and sell it today you would earn a total of  398  from holding iShares Russell 1000 Growth or generate 3.03% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between PowerShares QQQ and iShares Russell
0.7

Parameters

Time Period1 Month [change]
DirectionPositive 
StrengthSignificant
Accuracy95.45%
ValuesDaily Returns

Diversification

Poor diversification

Overlapping area represents the amount of risk that can be diversified away by holding PowerShares QQQ ETF and iShares Russell 1000 Growth in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on iShares Russell 1000 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 Russell. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Russell 1000 has no effect on the direction of PowerShares QQQ i.e. PowerShares QQQ and iShares Russell go up and down completely randomly.

Comparative Volatility

 Predicted Return Density 
      Returns 

PowerShares QQQ ETF

  
9 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in PowerShares QQQ ETF are ranked lower than 9 (%) of all global equities and portfolios over the last 30 days.

iShares Russell 1000

  
19 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in iShares Russell 1000 Growth are ranked lower than 19 (%) of all global equities and portfolios over the last 30 days.