Correlation Between AUPU Home and Dow Jones
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By analyzing existing cross correlation between AUPU Home Style and Dow Jones Industrial, you can compare the effects of market volatilities on AUPU Home 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 AUPU Home with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of AUPU Home and Dow Jones.
Diversification Opportunities for AUPU Home and Dow Jones
Poor diversification
The 3 months correlation between AUPU and Dow is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding AUPU Home Style 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 AUPU Home 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 AUPU Home Style 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 AUPU Home i.e., AUPU Home and Dow Jones go up and down completely randomly.
Pair Corralation between AUPU Home and Dow Jones
Assuming the 90 days trading horizon AUPU Home Style is expected to generate 2.47 times more return on investment than Dow Jones. However, AUPU Home is 2.47 times more volatile than Dow Jones Industrial. It trades about 0.17 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.38 per unit of risk. If you would invest 1,040 in AUPU Home Style on September 3, 2024 and sell it today you would earn a total of 83.00 from holding AUPU Home Style or generate 7.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
AUPU Home Style vs. Dow Jones Industrial
Performance |
| Timeline |
AUPU Home and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
AUPU Home Style
Pair trading matchups for AUPU Home
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with AUPU Home and Dow Jones
The main advantage of trading using opposite AUPU Home and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AUPU Home 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.| AUPU Home vs. PetroChina Co Ltd | AUPU Home vs. China Mobile Limited | AUPU Home vs. Industrial and Commercial | AUPU Home vs. China Life Insurance |
| Dow Jones vs. Eastern Co | Dow Jones vs. Uber Technologies | Dow Jones vs. AKITA Drilling | Dow Jones vs. Chemours Co |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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