Correlation Between CTBC Treasury and Dow Jones
Specify exactly 2 symbols:
By analyzing existing cross correlation between CTBC Treasury 20 and Dow Jones Industrial, you can compare the effects of market volatilities on CTBC Treasury 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 CTBC Treasury with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of CTBC Treasury and Dow Jones.
Diversification Opportunities for CTBC Treasury and Dow Jones
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between CTBC and Dow is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding CTBC Treasury 20 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 CTBC Treasury 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 CTBC Treasury 20 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 CTBC Treasury i.e., CTBC Treasury and Dow Jones go up and down completely randomly.
Pair Corralation between CTBC Treasury and Dow Jones
Assuming the 90 days trading horizon CTBC Treasury is expected to generate 12.93 times less return on investment than Dow Jones. In addition to that, CTBC Treasury is 1.15 times more volatile than Dow Jones Industrial. It trades about 0.01 of its total potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.08 per unit of volatility. If you would invest 3,410,864 in Dow Jones Industrial on September 3, 2024 and sell it today you would earn a total of 1,080,201 from holding Dow Jones Industrial or generate 31.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 96.97% |
| Values | Daily Returns |
CTBC Treasury 20 vs. Dow Jones Industrial
Performance |
| Timeline |
CTBC Treasury and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
CTBC Treasury 20
Pair trading matchups for CTBC Treasury
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with CTBC Treasury and Dow Jones
The main advantage of trading using opposite CTBC Treasury and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CTBC Treasury 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.| CTBC Treasury vs. CTBC USD Corporate | CTBC Treasury vs. CTBC 20 Year | CTBC Treasury vs. CTBC TIP Customized | CTBC Treasury vs. CTBC 15 Developed |
| Dow Jones vs. Eastern Co | Dow Jones vs. Uber Technologies | Dow Jones vs. AKITA Drilling | Dow Jones vs. Chemours Co |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |