Correlation Analysis Between DOW and Stockholm

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

DOW  vs.  Stockholm

 Performance (%) 
      Timeline 

Pair Volatility

Given the investment horizon of 30 days, DOW is expected to generate 0.85 times more return on investment than Stockholm. However, DOW is 1.18 times less risky than Stockholm. It trades about 0.12 of its potential returns per unit of risk. Stockholm is currently generating about 0.05 per unit of risk. If you would invest  2,470,021  in DOW on June 19, 2018 and sell it today you would earn a total of  49,908  from holding DOW or generate 2.02% return on investment over 30 days.

Pair Corralation between DOW and Stockholm

0.89
Time Period1 Month [change]
DirectionPositive 
StrengthStrong
Accuracy100.0%
ValuesDaily Returns

Diversification

Very poor diversification

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

 Predicted Return Density 
      Returns 

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Alphabet
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ExchangeNASDAQ
$1195.88

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See also your portfolio center. Please also try Price Ceiling Movement module to calculate and plot price ceiling movement for different equity instruments.