Correlation Analysis Between Income Fund and DOW

This module allows you to analyze existing cross correlation between The Income Fund of America Cla and DOW. You can compare the effects of market volatilities on Income Fund and DOW 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 Income Fund with a short position of DOW. See also your portfolio center. Please also check ongoing floating volatility patterns of Income Fund and DOW.
Horizon     30 Days    Login   to change
Check Efficiency

Comparative Performance

 Predicted Return Density 

The Income Fund of America Cla  vs.  DOW

 Performance (%) 

Pair Volatility

Assuming 30 trading days horizon, Income Fund is expected to generate 1.09 times less return on investment than DOW. But when comparing it to its historical volatility, The Income Fund of America Cla is 1.76 times less risky than DOW. It trades about 0.04 of its potential returns per unit of risk. DOW is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  2,672,754  in DOW on August 21, 2019 and sell it today you would earn a total of  31,496  from holding DOW or generate 1.18% return on investment over 30 days.

Pair Corralation between Income Fund and DOW

Time Period3 Months [change]
ValuesDaily Returns

Diversification Opportunities for Income Fund and DOW

The Income Fund of America Cla diversification synergy

Very poor diversification

Overlapping area represents the amount of risk that can be diversified away by holding The Income Fund of America Cla and DOW in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on DOW and Income Fund 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 The Income Fund of America Cla are associated (or correlated) with DOW. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DOW has no effect on the direction of Income Fund i.e. Income Fund and DOW go up and down completely randomly.
See also your portfolio center. Please also try Fundamentals Matrix module to view fundamentals matrix and analyze how accounts are interrelated and interconnected with each other.