Correlation Between Jahen Household and Dow Jones
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By analyzing existing cross correlation between Jahen Household Products and Dow Jones Industrial, you can compare the effects of market volatilities on Jahen Household 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 Jahen Household with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jahen Household and Dow Jones.
Diversification Opportunities for Jahen Household and Dow Jones
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jahen and Dow is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Jahen Household Products 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 Jahen Household 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 Jahen Household Products 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 Jahen Household i.e., Jahen Household and Dow Jones go up and down completely randomly.
Pair Corralation between Jahen Household and Dow Jones
Assuming the 90 days trading horizon Jahen Household Products is expected to under-perform the Dow Jones. In addition to that, Jahen Household is 4.28 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 0.08 per unit of volatility. If you would invest 3,347,646 in Dow Jones Industrial on August 30, 2024 and sell it today you would earn a total of 1,124,560 from holding Dow Jones Industrial or generate 33.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 96.16% |
| Values | Daily Returns |
Jahen Household Products vs. Dow Jones Industrial
Performance |
| Timeline |
Jahen Household and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Jahen Household Products
Pair trading matchups for Jahen Household
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Jahen Household and Dow Jones
The main advantage of trading using opposite Jahen Household and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jahen Household 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.| Jahen Household vs. Shandong Gold Mining | Jahen Household vs. Rongsheng Petrochemical Co | Jahen Household vs. Inner Mongolia BaoTou | Jahen Household vs. Jiangxi Ganfeng Lithium |
| Dow Jones vs. Kaltura | Dow Jones vs. Artisan Partners Asset | Dow Jones vs. US Global Investors | Dow Jones vs. Analog Devices |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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