Correlation Analysis Between PowerShares QQQ and Vanguard Russell

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.
 Time Horizon     30 Days    Login   to change
Symbolsvs

PowerShares QQQ ETF  vs.  Vanguard Russell 1000 Growth E

 Performance (%) 
      Timeline 

Pair Volatility

Considering 30-days investment horizon, PowerShares QQQ ETF is expected to generate 1.06 times more return on investment than Vanguard Russell. However, PowerShares QQQ is 1.06 times more volatile than Vanguard Russell 1000 Growth ETF. It trades about 0.26 of its potential returns per unit of risk. Vanguard Russell 1000 Growth ETF is currently generating about 0.2 per unit of risk. If you would invest  16,955  in PowerShares QQQ ETF on May 24, 2018 and sell it today you would earn a total of  577.00  from holding PowerShares QQQ ETF or generate 3.4% return on investment over 30 days.

Pair Corralation between PowerShares QQQ and Vanguard Russell

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 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.

Comparative Volatility

 Predicted Return Density 
      Returns 
PowerShares QQQ ETF  
17 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in PowerShares QQQ ETF are ranked lower than 17 (%) of all global equities and portfolios over the last 30 days.
Vanguard Russell 1000  
13 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Vanguard Russell 1000 Growth ETF are ranked lower than 13 (%) of all global equities and portfolios over the last 30 days.

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See also your portfolio center. Please also try Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.