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|
Predicted Return Density
Chubb Limited vs. DOW
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
|Time Period||3 Months [change]|
Diversification Opportunities for Chubb and DOW
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.
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.