Correlation Between Synchrony Swiss and Dow Jones
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By analyzing existing cross correlation between Synchrony Swiss Real and Dow Jones Industrial, you can compare the effects of market volatilities on Synchrony Swiss 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 Synchrony Swiss with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Synchrony Swiss and Dow Jones.
Diversification Opportunities for Synchrony Swiss and Dow Jones
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Synchrony and Dow is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Synchrony Swiss Real 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 Synchrony Swiss 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 Synchrony Swiss Real 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 Synchrony Swiss i.e., Synchrony Swiss and Dow Jones go up and down completely randomly.
Pair Corralation between Synchrony Swiss and Dow Jones
Assuming the 90 days trading horizon Synchrony Swiss Real is expected to generate 0.6 times more return on investment than Dow Jones. However, Synchrony Swiss Real is 1.67 times less risky than Dow Jones. It trades about 0.35 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about -0.07 per unit of risk. If you would invest 11,878 in Synchrony Swiss Real on September 21, 2024 and sell it today you would earn a total of 447.00 from holding Synchrony Swiss Real or generate 3.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Synchrony Swiss Real vs. Dow Jones Industrial
Performance |
| Timeline |
Synchrony Swiss and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Synchrony Swiss Real
Pair trading matchups for Synchrony Swiss
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Synchrony Swiss and Dow Jones
The main advantage of trading using opposite Synchrony Swiss and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Synchrony Swiss 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.| Synchrony Swiss vs. SPDR Dow Jones | Synchrony Swiss vs. Baloise Holding AG | Synchrony Swiss vs. Banque Cantonale du | Synchrony Swiss vs. 21Shares Polkadot ETP |
| Dow Jones vs. Kinsale Capital Group | Dow Jones vs. QBE Insurance Group | Dow Jones vs. ICC Holdings | Dow Jones vs. Weyco Group |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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