Correlation Analysis Between DOW and OMXVGI

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

Comparative Performance

 Predicted Return Density 


 Performance (%) 

Pair Volatility

Given the investment horizon of 30 days, DOW is expected to generate 2.6 times more return on investment than OMXVGI. However, DOW is 2.6 times more volatile than OMXVGI. It trades about -0.11 of its potential returns per unit of risk. OMXVGI is currently generating about -0.31 per unit of risk. If you would invest  2,570,668  in DOW on November 16, 2018 and sell it today you would lose (160,617)  from holding DOW or give up 6.25% of portfolio value over 30 days.

Pair Corralation between DOW and OMXVGI

Time Period2 Months [change]
ValuesDaily Returns

Diversification Opportunities for DOW and OMXVGI

DOW diversification synergy

Very weak diversification

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

Thematic Opportunities

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See also your portfolio center. Please also try Chance of Distress module to get analysis of equity chance of financial distress in the next 2 years.