This module allows you to analyze existing cross correlation between PowerShares QQQ ETF and Vanguard Russell 1000 Growth ETF. You can compare the effects of market volatilities on PowerShares QQQ and Vanguard 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 Vanguard Russell. See also your portfolio center
. Please also check ongoing floating volatility patterns of PowerShares QQQ
and Vanguard Russell
PowerShares QQQ ETF vs Vanguard Russell 1000 Growth E
Considering 30-days investment horizon, PowerShares QQQ ETF is expected to generate 1.14 times more return on investment than Vanguard Russell. However, PowerShares QQQ is 1.14 times more volatile than Vanguard Russell 1000 Growth ETF. It trades about -0.07 of its potential returns per unit of risk. Vanguard Russell 1000 Growth ETF is currently generating about -0.09 per unit of risk. If you would invest 16,951 in PowerShares QQQ ETF on January 23, 2018 and sell it today you would lose (469.00) from holding PowerShares QQQ ETF or give up 2.77% of portfolio value over 30 days.
|Time Period||1 Month [change]|
No risk reduction
Overlapping area represents the amount of risk that can be diversified away by holding PowerShares QQQ ETF and Vanguard Russell 1000 Growth E in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Vanguard 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 Vanguard Russell. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vanguard Russell 1000 has no effect on the direction of PowerShares QQQ i.e. PowerShares QQQ and Vanguard Russell 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 Vanguard Russell 1000 Growth ETF has generated negative risk-adjusted returns adding no value to investors with long positions.