Correlation Between EVS Broadcast and Dow Jones
Can any of the company-specific risk be diversified away by investing in both EVS Broadcast and Dow Jones at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining EVS Broadcast and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EVS Broadcast Equipment and Dow Jones Industrial, you can compare the effects of market volatilities on EVS Broadcast 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 EVS Broadcast with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of EVS Broadcast and Dow Jones.
Diversification Opportunities for EVS Broadcast and Dow Jones
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between EVS and Dow is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding EVS Broadcast Equipment 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 EVS Broadcast 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 EVS Broadcast Equipment 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 EVS Broadcast i.e., EVS Broadcast and Dow Jones go up and down completely randomly.
Pair Corralation between EVS Broadcast and Dow Jones
Assuming the 90 days trading horizon EVS Broadcast Equipment is expected to under-perform the Dow Jones. But the stock apears to be less risky and, when comparing its historical volatility, EVS Broadcast Equipment is 1.25 times less risky than Dow Jones. The stock trades about -0.24 of its potential returns per unit of risk. The Dow Jones Industrial is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 4,234,224 in Dow Jones Industrial on October 20, 2024 and sell it today you would earn a total of 114,559 from holding Dow Jones Industrial or generate 2.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
EVS Broadcast Equipment vs. Dow Jones Industrial
Performance |
| Timeline |
EVS Broadcast and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
EVS Broadcast Equipment
Pair trading matchups for EVS Broadcast
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with EVS Broadcast and Dow Jones
The main advantage of trading using opposite EVS Broadcast and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EVS Broadcast 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.| EVS Broadcast vs. Blackrock World Mining | EVS Broadcast vs. Zoom Video Communications | EVS Broadcast vs. Bisichi Mining PLC | EVS Broadcast vs. Qurate Retail Series |
| Dow Jones vs. SkyWest | Dow Jones vs. Air Transport Services | Dow Jones vs. LATAM Airlines Group | Dow Jones vs. Emerson Radio |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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