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.
Horizon     30 Days    Login   to change
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Comparative Performance

 Predicted Return Density 

PIMCO 1 5 Year U S TIPS Index  vs.  DOW

 Performance (%) 

Pair Volatility

Given the investment horizon of 30 days, PIMCO 1 5 Year U S TIPS Index is expected to generate 0.12 times more return on investment than DOW. However, PIMCO 1 5 Year U S TIPS Index is 8.12 times less risky than DOW. It trades about -0.05 of its potential returns per unit of risk. DOW is currently generating about -0.01 per unit of risk. If you would invest  5,243  in PIMCO 1 5 Year U S TIPS Index on September 16, 2019 and sell it today you would lose (22.00)  from holding PIMCO 1 5 Year U S TIPS Index or give up 0.42% of portfolio value over 30 days.

Pair Corralation between PIMCO 1 and DOW

Time Period3 Months [change]
ValuesDaily Returns

Diversification Opportunities for PIMCO 1 and DOW

PIMCO 1 5 Year U S TIPS Index diversification synergy

Excellent diversification

Overlapping area represents the amount of risk that can be diversified away by holding PIMCO 1 5 Year U S TIPS Index and DOW in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on DOW and PIMCO 1 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 PIMCO 1 5 Year U S TIPS Index 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 PIMCO 1 i.e. PIMCO 1 and DOW go up and down completely randomly.
See also your portfolio center. Please also try Money Flow Index module to determine momentum by analyzing money flow index and other technical indicators.