Correlation Analysis Between DOW and Loews

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

 Predicted Return Density 
      Returns 

DOW  vs.  Loews Corp.

 Performance (%) 
      Timeline 

Pair Volatility

Given the investment horizon of 30 days, DOW is expected to generate 0.57 times more return on investment than Loews. However, DOW is 1.77 times less risky than Loews. It trades about 0.09 of its potential returns per unit of risk. Loews Corporation is currently generating about -0.01 per unit of risk. If you would invest  2,679,746  in DOW on November 5, 2019 and sell it today you would earn a total of  88,449  from holding DOW or generate 3.3% return on investment over 30 days.

Pair Corralation between DOW and Loews

0.31
Time Period3 Months [change]
DirectionPositive 
StrengthVery Weak
Accuracy98.44%
ValuesDaily Returns

Diversification Opportunities for DOW and Loews

DOW diversification synergy

Weak diversification

Overlapping area represents the amount of risk that can be diversified away by holding DOW and Loews Corp. in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Loews 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 Loews. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Loews has no effect on the direction of DOW i.e. DOW and Loews go up and down completely randomly.
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See also your portfolio center. Please also try Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.


 
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