This module allows you to analyze existing cross correlation between PowerShares QQQ ETF and Vanguard Growth ETF. You can compare the effects of market volatilities on PowerShares QQQ and Vanguard Growth 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 Growth. See also your portfolio center
. Please also check ongoing floating volatility patterns of PowerShares QQQ
and Vanguard Growth
PowerShares QQQ ETF vs Vanguard Growth ETF
Considering 30-days investment horizon, PowerShares QQQ ETF is expected to generate 1.29 times more return on investment than Vanguard Growth. However, PowerShares QQQ is 1.29 times more volatile than Vanguard Growth ETF. It trades about 0.5 of its potential returns per unit of risk. Vanguard Growth ETF is currently generating about 0.61 per unit of risk. If you would invest 15,737 in PowerShares QQQ ETF on December 22, 2017 and sell it today you would earn a total of 897 from holding PowerShares QQQ ETF or generate 5.7% return on investment over 30 days.
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No risk reduction
Overlapping area represents the amount of risk that can be diversified away by holding PowerShares QQQ ETF and Vanguard Growth ETF in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Vanguard Growth ETF 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 Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vanguard Growth ETF has no effect on the direction of PowerShares QQQ i.e. PowerShares QQQ and Vanguard Growth 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 32 (%) of all global equities and portfolios over the last 30 days.
Compared to the overall equity markets, risk-adjusted returns on investments in Vanguard Growth ETF are ranked lower than 40 (%) of all global equities and portfolios over the last 30 days.