Correlation Analysis Between XU100 and DOW

This module allows you to analyze existing cross correlation between XU100 and DOW. You can compare the effects of market volatilities on XU100 and DOW 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 XU100 with a short position of DOW. See also your portfolio center. Please also check ongoing floating volatility patterns of XU100 and DOW.
Horizon     30 Days    Login   to change
Symbolsvs

XU100  vs.  DOW

 Performance (%) 
      Timeline 

Pair Volatility

Assuming 30 trading days horizon, XU100 is expected to generate 1.62 times more return on investment than DOW. However, XU100 is 1.62 times more volatile than DOW. It trades about 0.12 of its potential returns per unit of risk. DOW is currently generating about -0.08 per unit of risk. If you would invest  9,488,687  in XU100 on September 18, 2018 and sell it today you would earn a total of  410,414  from holding XU100 or generate 4.33% return on investment over 30 days.

Pair Corralation between XU100 and DOW

0.27
Time Period1 Month [change]
DirectionPositive 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Diversification

Modest diversification

Overlapping area represents the amount of risk that can be diversified away by holding XU100 and DOW in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on DOW and XU100 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 XU100 are associated (or correlated) with DOW. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DOW has no effect on the direction of XU100 i.e. XU100 and DOW go up and down completely randomly.
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Comparative Volatility

 Predicted Return Density 
      Returns 

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GOOG - USA Stock
Alphabet
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IT, Search Cloud And Integrated IT Services
Business Address1600 Amphitheatre Parkway
ExchangeNASDAQ
$1092.25

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