Correlation Between MacroWell OMG and Dow Jones
Can any of the company-specific risk be diversified away by investing in both MacroWell OMG 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 MacroWell OMG and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MacroWell OMG Digital and Dow Jones Industrial, you can compare the effects of market volatilities on MacroWell OMG 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 MacroWell OMG with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of MacroWell OMG and Dow Jones.
Diversification Opportunities for MacroWell OMG and Dow Jones
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between MacroWell and Dow is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding MacroWell OMG Digital 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 MacroWell OMG 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 MacroWell OMG Digital 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 MacroWell OMG i.e., MacroWell OMG and Dow Jones go up and down completely randomly.
Pair Corralation between MacroWell OMG and Dow Jones
Assuming the 90 days trading horizon MacroWell OMG Digital is expected to under-perform the Dow Jones. In addition to that, MacroWell OMG is 2.23 times more volatile than Dow Jones Industrial. It trades about -0.29 of its total potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.37 per unit of volatility. 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 | Very Weak |
| Accuracy | 91.3% |
| Values | Daily Returns |
MacroWell OMG Digital vs. Dow Jones Industrial
Performance |
| Timeline |
MacroWell OMG and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
MacroWell OMG Digital
Pair trading matchups for MacroWell OMG
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with MacroWell OMG and Dow Jones
The main advantage of trading using opposite MacroWell OMG and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MacroWell OMG 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.| MacroWell OMG vs. AzureWave Technologies | MacroWell OMG vs. V Tac Technology Co | MacroWell OMG vs. Sun Max Tech | MacroWell OMG vs. Sunnic Technology Merchandise |
| 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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