Correlation Analysis Between DOW and BSE

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

DOW  vs.  BSE

 Performance (%) 

Pair Volatility

Given the investment horizon of 30 days, DOW is expected to generate 0.72 times more return on investment than BSE. However, DOW is 1.38 times less risky than BSE. It trades about 0.23 of its potential returns per unit of risk. BSE is currently generating about -0.21 per unit of risk. If you would invest  2,575,869  in DOW on August 20, 2018 and sell it today you would earn a total of  48,827  from holding DOW or generate 1.9% return on investment over 30 days.

Pair Corralation between DOW and BSE

Time Period1 Month [change]
ValuesDaily Returns


Pay attention

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

Comparative Volatility

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See also your portfolio center. Please also try Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.