Correlation Analysis Between PowerShares QQQ and Vanguard Mega

This module allows you to analyze existing cross correlation between PowerShares QQQ ETF and Vanguard Mega Cap Growth ETF. You can compare the effects of market volatilities on PowerShares QQQ and Vanguard Mega 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 Vanguard Mega. See also your portfolio center. Please also check ongoing floating volatility patterns of PowerShares QQQ and Vanguard Mega.
 Time Horizon     30 Days    Login   to change
Symbolsvs

PowerShares QQQ ETF  vs.  Vanguard Mega Cap Growth ETF

 Performance (%) 
      Timeline 

Pair Volatility

Considering 30-days investment horizon, PowerShares QQQ ETF is expected to generate 1.13 times more return on investment than Vanguard Mega. However, PowerShares QQQ is 1.13 times more volatile than Vanguard Mega Cap Growth ETF. It trades about 0.31 of its potential returns per unit of risk. Vanguard Mega Cap Growth ETF is currently generating about 0.33 per unit of risk. If you would invest  16,897  in PowerShares QQQ ETF on May 26, 2018 and sell it today you would earn a total of  635.00  from holding PowerShares QQQ ETF or generate 3.76% return on investment over 30 days.

Pair Corralation between PowerShares QQQ and Vanguard Mega

0.98
Time Period1 Month [change]
DirectionPositive 
StrengthVery Strong
Accuracy100.0%
ValuesDaily Returns

Diversification

Almost no diversification

Overlapping area represents the amount of risk that can be diversified away by holding PowerShares QQQ ETF and Vanguard Mega Cap Growth ETF in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Vanguard Mega Cap 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 Vanguard Mega. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vanguard Mega Cap has no effect on the direction of PowerShares QQQ i.e. PowerShares QQQ and Vanguard Mega 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.
Vanguard Mega Cap  
22 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Vanguard Mega Cap Growth ETF are ranked lower than 22 (%) of all global equities and portfolios over the last 30 days.

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