Correlation Analysis Between Chubb and DOW

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

 Predicted Return Density 
      Returns 

Chubb Limited  vs.  DOW

 Performance (%) 
      Timeline 

Pair Volatility

Allowing for the 30-days total investment horizon, Chubb Limited is expected to generate 1.26 times more return on investment than DOW. However, Chubb is 1.26 times more volatile than DOW. It trades about 0.08 of its potential returns per unit of risk. DOW is currently generating about 0.03 per unit of risk. If you would invest  15,008  in Chubb Limited on August 21, 2019 and sell it today you would earn a total of  818.00  from holding Chubb Limited or generate 5.45% return on investment over 30 days.

Pair Corralation between Chubb and DOW

-0.14
Time Period3 Months [change]
DirectionNegative 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for Chubb and DOW

Chubb Limited diversification synergy

Good diversification

Overlapping area represents the amount of risk that can be diversified away by holding Chubb Limited and DOW in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on DOW and Chubb 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 Chubb Limited 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 Chubb i.e. Chubb and DOW 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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