Correlation Analysis Between DOW and Vanguard New

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

 Predicted Return Density 
      Returns 

DOW  vs.  Vanguard New Jersey Long Term

 Performance (%) 
      Timeline 

Pair Volatility

Given the investment horizon of 30 days, DOW is expected to generate 3.8 times more return on investment than Vanguard New. However, DOW is 3.8 times more volatile than Vanguard New Jersey Long Term T. It trades about 0.17 of its potential returns per unit of risk. Vanguard New Jersey Long Term T is currently generating about -0.13 per unit of risk. If you would invest  2,557,939  in DOW on October 14, 2019 and sell it today you would earn a total of  211,210  from holding DOW or generate 8.26% return on investment over 30 days.

Pair Corralation between DOW and Vanguard New

-0.82
Time Period3 Months [change]
DirectionNegative 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for DOW and Vanguard New

DOW diversification synergy

Pay attention

Overlapping area represents the amount of risk that can be diversified away by holding DOW and Vanguard New Jersey Long Term in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Vanguard New Jersey 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 Vanguard New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vanguard New Jersey has no effect on the direction of DOW i.e. DOW and Vanguard New go up and down completely randomly.
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See also your portfolio center. Please also try Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.


 
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