Correlation Analysis Between PowerShares QQQ and Vanguard Growth

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.
 Time Horizon     30 Days    Login   to change
Symbolsvs

PowerShares QQQ ETF  vs.  Vanguard Growth ETF

 Performance (%) 
      Timeline 

Pair Volatility

Considering 30-days investment horizon, PowerShares QQQ ETF is expected to generate 1.31 times more return on investment than Vanguard Growth. However, PowerShares QQQ is 1.31 times more volatile than Vanguard Growth ETF. It trades about -0.03 of its potential returns per unit of risk. Vanguard Growth ETF is currently generating about -0.04 per unit of risk. If you would invest  18,027  in PowerShares QQQ ETF on July 17, 2018 and sell it today you would lose (104.00)  from holding PowerShares QQQ ETF or give up 0.58% of portfolio value over 30 days.

Pair Corralation between PowerShares QQQ and Vanguard Growth

0.63
Time Period1 Month [change]
DirectionPositive 
StrengthSignificant
Accuracy95.65%
ValuesDaily Returns

Diversification

Poor diversification

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.

Comparative Volatility

 Predicted Return Density 
      Returns 
PowerShares QQQ ETF  
0 

Risk-Adjusted Performance

Over the last 30 days PowerShares QQQ ETF has generated negative risk-adjusted returns adding no value to investors with long positions.
Vanguard Growth ETF  
0 

Risk-Adjusted Performance

Over the last 30 days Vanguard Growth ETF has generated negative risk-adjusted returns adding no value to investors with long positions.

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