Correlation Between Techbond Group and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Techbond Group 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 Techbond Group and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Techbond Group Bhd and Dow Jones Industrial, you can compare the effects of market volatilities on Techbond Group 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 Techbond Group with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Techbond Group and Dow Jones.
Diversification Opportunities for Techbond Group and Dow Jones
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Techbond and Dow is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Techbond Group Bhd 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 Techbond Group 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 Techbond Group Bhd 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 Techbond Group i.e., Techbond Group and Dow Jones go up and down completely randomly.
Pair Corralation between Techbond Group and Dow Jones
Assuming the 90 days trading horizon Techbond Group Bhd is expected to under-perform the Dow Jones. In addition to that, Techbond Group is 2.54 times more volatile than Dow Jones Industrial. It trades about -0.09 of its total potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.18 per unit of volatility. If you would invest 4,109,142 in Dow Jones Industrial on August 28, 2024 and sell it today you would earn a total of 376,889 from holding Dow Jones Industrial or generate 9.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.44% |
| Values | Daily Returns |
Techbond Group Bhd vs. Dow Jones Industrial
Performance |
| Timeline |
Techbond Group and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Techbond Group Bhd
Pair trading matchups for Techbond Group
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Techbond Group and Dow Jones
The main advantage of trading using opposite Techbond Group and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Techbond Group 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.| Techbond Group vs. Silver Ridge Holdings | Techbond Group vs. Greatech Technology Bhd | Techbond Group vs. Aurelius Technologies Bhd | Techbond Group vs. Nova Wellness Group |
| Dow Jones vs. CECO Environmental Corp | Dow Jones vs. Western Acquisition Ventures | Dow Jones vs. Tyson Foods | Dow Jones vs. Inflection Point Acquisition |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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