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
PowerShares QQQ ETF vs Vanguard Mega Cap Growth ETF
Considering 30-days investment horizon, PowerShares QQQ ETF is expected to generate 1.6 times more return on investment than Vanguard Mega. However, PowerShares QQQ is 1.6 times more volatile than Vanguard Mega Cap Growth ETF. It trades about 0.23 of its potential returns per unit of risk. Vanguard Mega Cap Growth ETF is currently generating about 0.27 per unit of risk. If you would invest 14,555 in PowerShares QQQ ETF on September 17, 2017 and sell it today you would earn a total of 330 from holding PowerShares QQQ ETF or generate 2.27% return on investment over 30 days.
|Time Period||1 Month [change]|
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.
Compared to the overall equity markets, risk-adjusted returns on investments in PowerShares QQQ ETF are ranked lower than 15 (%) of all global equities and portfolios over the last 30 days.
Compared to the overall equity markets, risk-adjusted returns on investments in Vanguard Mega Cap Growth ETF are ranked lower than 18 (%) of all global equities and portfolios over the last 30 days.