Correlation Between Namu Tech and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Namu Tech 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 Namu Tech and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Namu Tech CoLtd and Dow Jones Industrial, you can compare the effects of market volatilities on Namu Tech 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 Namu Tech with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Namu Tech and Dow Jones.
Diversification Opportunities for Namu Tech and Dow Jones
Very good diversification
The 3 months correlation between Namu and Dow is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Namu Tech CoLtd 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 Namu Tech 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 Namu Tech CoLtd 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 Namu Tech i.e., Namu Tech and Dow Jones go up and down completely randomly.
Pair Corralation between Namu Tech and Dow Jones
Assuming the 90 days trading horizon Namu Tech CoLtd is expected to under-perform the Dow Jones. In addition to that, Namu Tech is 5.27 times more volatile than Dow Jones Industrial. It trades about -0.02 of its total potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.07 per unit of volatility. If you would invest 3,351,765 in Dow Jones Industrial on September 30, 2024 and sell it today you would earn a total of 947,456 from holding Dow Jones Industrial or generate 28.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 97.19% |
| Values | Daily Returns |
Namu Tech CoLtd vs. Dow Jones Industrial
Performance |
| Timeline |
Namu Tech and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Namu Tech CoLtd
Pair trading matchups for Namu Tech
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Namu Tech and Dow Jones
The main advantage of trading using opposite Namu Tech and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Namu Tech 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.| Namu Tech vs. Myoung Shin Industrial | Namu Tech vs. DSC Investment | Namu Tech vs. KTB Investment Securities | Namu Tech vs. Seoyon Topmetal Co |
| Dow Jones vs. Dana Inc | Dow Jones vs. Wabash National | Dow Jones vs. BRP Inc | Dow Jones vs. ArcelorMittal SA ADR |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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