Correlation Analysis Between DOW and NQPH

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

Comparative Performance

 Predicted Return Density 

DOW  vs.  NQPH

 Performance (%) 

Pair Volatility

Given the investment horizon of 30 days, DOW is expected to under-perform the NQPH. In addition to that, DOW is 1.05 times more volatile than NQPH. It trades about -0.07 of its total potential returns per unit of risk. NQPH is currently generating about 0.17 per unit of volatility. If you would invest  93,134  in NQPH on November 14, 2018 and sell it today you would earn a total of  8,605  from holding NQPH or generate 9.24% return on investment over 30 days.

Pair Corralation between DOW and NQPH

Time Period2 Months [change]
ValuesDaily Returns

Diversification Opportunities for DOW and NQPH

DOW diversification synergy

Very good diversification

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

Thematic Opportunities

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See also your portfolio center. Please also try Money Flow Index module to determine momentum by analyzing money flow index and other technical indicators.