Correlation Between Allmed Medical and Dow Jones
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By analyzing existing cross correlation between Allmed Medical Products and Dow Jones Industrial, you can compare the effects of market volatilities on Allmed Medical and Dow Jones 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 Allmed Medical with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allmed Medical and Dow Jones.
Diversification Opportunities for Allmed Medical and Dow Jones
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Allmed and Dow is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Allmed Medical Products and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial and Allmed Medical 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 Allmed Medical Products are associated (or correlated) with Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of Allmed Medical i.e., Allmed Medical and Dow Jones go up and down completely randomly.
Pair Corralation between Allmed Medical and Dow Jones
Assuming the 90 days trading horizon Allmed Medical Products is expected to generate 4.3 times more return on investment than Dow Jones. However, Allmed Medical is 4.3 times more volatile than Dow Jones Industrial. It trades about 0.12 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.17 per unit of risk. If you would invest 795.00 in Allmed Medical Products on August 28, 2024 and sell it today you would earn a total of 115.00 from holding Allmed Medical Products or generate 14.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 88.37% |
| Values | Daily Returns |
Allmed Medical Products vs. Dow Jones Industrial
Performance |
| Timeline |
Allmed Medical and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Allmed Medical Products
Pair trading matchups for Allmed Medical
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Allmed Medical and Dow Jones
The main advantage of trading using opposite Allmed Medical and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allmed Medical position performs unexpectedly, Dow Jones can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Dow Jones will offset losses from the drop in Dow Jones' long position.| Allmed Medical vs. Bank of China | Allmed Medical vs. Kweichow Moutai Co | Allmed Medical vs. PetroChina Co Ltd | Allmed Medical vs. Bank of Communications |
| Dow Jones vs. CECO Environmental Corp | Dow Jones vs. Western Acquisition Ventures | Dow Jones vs. Tyson Foods | Dow Jones vs. Inflection Point Acquisition |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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