Correlation Between Fitipower Integrated and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Fitipower Integrated 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 Fitipower Integrated and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fitipower Integrated Technology and Dow Jones Industrial, you can compare the effects of market volatilities on Fitipower Integrated 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 Fitipower Integrated with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fitipower Integrated and Dow Jones.
Diversification Opportunities for Fitipower Integrated and Dow Jones
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Fitipower and Dow is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Fitipower Integrated Technolog 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 Fitipower Integrated 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 Fitipower Integrated 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 Fitipower Integrated i.e., Fitipower Integrated and Dow Jones go up and down completely randomly.
Pair Corralation between Fitipower Integrated and Dow Jones
Assuming the 90 days trading horizon Fitipower Integrated Technology is expected to under-perform the Dow Jones. In addition to that, Fitipower Integrated is 2.45 times more volatile than Dow Jones Industrial. It trades about -0.25 of its total potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.21 per unit of volatility. If you would invest 4,237,436 in Dow Jones Industrial on August 25, 2024 and sell it today you would earn a total of 192,215 from holding Dow Jones Industrial or generate 4.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fitipower Integrated Technolog vs. Dow Jones Industrial
Performance |
| Timeline |
Fitipower Integrated and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Fitipower Integrated Technology
Pair trading matchups for Fitipower Integrated
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Fitipower Integrated and Dow Jones
The main advantage of trading using opposite Fitipower Integrated and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fitipower Integrated 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.| Fitipower Integrated vs. FocalTech Systems Co | Fitipower Integrated vs. Novatek Microelectronics Corp | Fitipower Integrated vs. Sitronix Technology Corp | Fitipower Integrated vs. AP Memory Technology |
| Dow Jones vs. Vistra Energy Corp | Dow Jones vs. Fluence Energy | Dow Jones vs. Old Republic International | Dow Jones vs. Empresa Distribuidora y |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |