Correlation Between BenQ Medical and Dow Jones
Can any of the company-specific risk be diversified away by investing in both BenQ Medical 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 BenQ Medical and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BenQ Medical Technology and Dow Jones Industrial, you can compare the effects of market volatilities on BenQ Medical 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 BenQ Medical with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of BenQ Medical and Dow Jones.
Diversification Opportunities for BenQ Medical and Dow Jones
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between BenQ and Dow is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding BenQ Medical Technology 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 BenQ Medical 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 BenQ Medical Technology 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 BenQ Medical i.e., BenQ Medical and Dow Jones go up and down completely randomly.
Pair Corralation between BenQ Medical and Dow Jones
Assuming the 90 days trading horizon BenQ Medical Technology is expected to under-perform the Dow Jones. In addition to that, BenQ Medical is 1.99 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 0.11 per unit of volatility. If you would invest 3,446,369 in Dow Jones Industrial on September 12, 2024 and sell it today you would earn a total of 978,414 from holding Dow Jones Industrial or generate 28.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.18% |
| Values | Daily Returns |
BenQ Medical Technology vs. Dow Jones Industrial
Performance |
| Timeline |
BenQ Medical and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
BenQ Medical Technology
Pair trading matchups for BenQ Medical
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with BenQ Medical and Dow Jones
The main advantage of trading using opposite BenQ Medical and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BenQ Medical 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.| BenQ Medical vs. Universal Vision Biotechnology | BenQ Medical vs. Excelsior Medical Co | BenQ Medical vs. Pacific Hospital Supply | BenQ Medical vs. Ruentex Development Co |
| Dow Jones vs. Aeye Inc | Dow Jones vs. Gentex | Dow Jones vs. Marine Products | Dow Jones vs. CarsalesCom Ltd 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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