Correlation Analysis Between DOW and XU100

This module allows you to analyze existing cross correlation between DOW and XU100. You can compare the effects of market volatilities on DOW and XU100 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 XU100. See also your portfolio center. Please also check ongoing floating volatility patterns of DOW and XU100.
Horizon     30 Days    Login   to change
Compare Efficiency

Comparative Performance

 Predicted Return Density 

DOW  vs.  XU100

 Performance (%) 

Pair Volatility

Given the investment horizon of 30 days, DOW is expected to generate 0.7 times more return on investment than XU100. However, DOW is 1.42 times less risky than XU100. It trades about -0.11 of its potential returns per unit of risk. XU100 is currently generating about -0.19 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 XU100

Time Period2 Months [change]
ValuesDaily Returns

Diversification Opportunities for DOW and XU100

DOW diversification synergy

Very weak diversification

Overlapping area represents the amount of risk that can be diversified away by holding DOW and XU100 in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on XU100 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 XU100. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XU100 has no effect on the direction of DOW i.e. DOW and XU100 go up and down completely randomly.

Thematic Opportunities

Explore Investment Opportunities

Build portfolios using Macroaxis predefined set of investing ideas. Many of Macroaxis investing ideas can easily outperform a given market. Ideas can also be optimized per your risk profile before portfolio origination is invoked.
Explore Thematic Ideas
Explore Investing Ideas  
See also your portfolio center. Please also try Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.