Correlation Between LO Funds and Dow Jones
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By analyzing existing cross correlation between LO Funds Swiss and Dow Jones Industrial, you can compare the effects of market volatilities on LO Funds 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 LO Funds with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of LO Funds and Dow Jones.
Diversification Opportunities for LO Funds and Dow Jones
Excellent diversification
The 3 months correlation between 0P00001R8Q and Dow is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding LO Funds Swiss 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 LO Funds 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 LO Funds Swiss 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 LO Funds i.e., LO Funds and Dow Jones go up and down completely randomly.
Pair Corralation between LO Funds and Dow Jones
Assuming the 90 days trading horizon LO Funds Swiss is expected to under-perform the Dow Jones. But the fund apears to be less risky and, when comparing its historical volatility, LO Funds Swiss is 1.34 times less risky than Dow Jones. The fund trades about -0.17 of its potential returns per unit of risk. The Dow Jones Industrial is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 4,292,489 in Dow Jones Industrial on September 22, 2024 and sell it today you would lose (8,463) from holding Dow Jones Industrial or give up 0.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
LO Funds Swiss vs. Dow Jones Industrial
Performance |
| Timeline |
LO Funds and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
LO Funds Swiss
Pair trading matchups for LO Funds
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with LO Funds and Dow Jones
The main advantage of trading using opposite LO Funds and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LO Funds 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.| LO Funds vs. SPDR Dow Jones | LO Funds vs. Baloise Holding AG | LO Funds vs. Banque Cantonale du | LO Funds vs. 21Shares Polkadot ETP |
| Dow Jones vs. Hurco Companies | Dow Jones vs. Sabre Corpo | Dow Jones vs. Glacier Bancorp | Dow Jones vs. Barings BDC |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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