Correlation Between Amundi 3 and Dow Jones
Specify exactly 2 symbols:
By analyzing existing cross correlation between Amundi 3 Mois and Dow Jones Industrial, you can compare the effects of market volatilities on Amundi 3 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 Amundi 3 with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amundi 3 and Dow Jones.
Diversification Opportunities for Amundi 3 and Dow Jones
Very poor diversification
The 3 months correlation between Amundi and Dow is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Amundi 3 Mois 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 Amundi 3 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 Amundi 3 Mois 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 Amundi 3 i.e., Amundi 3 and Dow Jones go up and down completely randomly.
Pair Corralation between Amundi 3 and Dow Jones
Assuming the 90 days trading horizon Amundi 3 is expected to generate 34.06 times less return on investment than Dow Jones. But when comparing it to its historical volatility, Amundi 3 Mois is 124.75 times less risky than Dow Jones. It trades about 1.36 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.37 of returns per unit of risk over similar time horizon. If you would invest 4,176,346 in Dow Jones Industrial on September 1, 2024 and sell it today you would earn a total of 314,719 from holding Dow Jones Industrial or generate 7.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 91.3% |
| Values | Daily Returns |
Amundi 3 Mois vs. Dow Jones Industrial
Performance |
| Timeline |
Amundi 3 and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Amundi 3 Mois
Pair trading matchups for Amundi 3
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Amundi 3 and Dow Jones
The main advantage of trading using opposite Amundi 3 and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amundi 3 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.The idea behind Amundi 3 Mois and Dow Jones Industrial pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Dow Jones vs. Catalyst Pharmaceuticals | Dow Jones vs. Sphere Entertainment Co | Dow Jones vs. National CineMedia | Dow Jones vs. Mink Therapeutics |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |