Two Equities Correlation Analysis

This model provides you with a quick lookup of cross correlation between two equities. Please specify two instruments to run the correlation.

Specify exactly 2 symbols:

Can any of the company-specific risk be diversified away by investing in both PFA Invest and DOW at the same time? Although using correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combing PFA Invest and DOW into the same portfolio which is an essential part of fundamental portfolio management process.

Diversification Opportunities for PFA Invest and DOW


Good diversification

The 3 months correlation between PFIUDO and DOW is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding PFA Invest Udenlandske Obl and DOW in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on DOW and PFA Invest 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 PFA Invest Udenlandske 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 PFA Invest i.e. PFA Invest and DOW go up and down completely randomly.

Pair Corralation between PFA Invest and DOW

Assuming 30 trading days horizon, PFA Invest Udenlandske is expected to generate 0.21 times more return on investment than DOW. However, PFA Invest Udenlandske is 4.78 times less risky than DOW. It trades about 0.1 of its potential returns per unit of risk. DOW is currently generating about 0.0 per unit of risk. If you would invest  9,904  in PFA Invest Udenlandske on April 29, 2020 and sell it today you would earn a total of  136.00  from holding PFA Invest Udenlandske or generate 1.37% return on investment over 30 days.
Time Period3 Months [change]
DirectionMoves Against 
ValuesDaily Returns

PFA Invest Udenlandske Obl  vs.  DOW

 Performance (%) 
 Predicted Return Density 
Check out your portfolio center. Please also try Global Correlations module to find global opportunities by holding instruments from different markets.

Macroaxis is not a registered investment advisor or broker/dealer. All investments, including stocks, funds, ETFs, or cryptocurrencies, are speculative and involve substantial risk of loss. We encourage our investors to invest carefully. Much of our information is derived directly from data published by companies or submitted to governmental agencies which we believe are reliable, but are without our independent verification. Therefore, we cannot assure you that the information is accurate or complete. We do not in any way warrant or guarantee the success of any action you take in reliance on our statements or recommendations. Also, note that past performance is not necessarily indicative of future results. All investments carry risk, and all investment decisions of an individual remain the responsibility of that individual. There is no guarantee that systems, indicators, or signals will result in profits or that they will not result in losses. All investors are advised to fully understand all risks associated with any investing they choose to do. Hypothetical or simulated performance is not indicative of future results. We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown because hypothetical or simulated performance is not necessarily indicative of future results. For more information please visit our terms and condition page