Correlation Between Aalborg Boldspilklub and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Aalborg Boldspilklub 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 Aalborg Boldspilklub and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aalborg Boldspilklub AS and Dow Jones Industrial, you can compare the effects of market volatilities on Aalborg Boldspilklub 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 Aalborg Boldspilklub with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aalborg Boldspilklub and Dow Jones.
Diversification Opportunities for Aalborg Boldspilklub and Dow Jones
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Aalborg and Dow is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Aalborg Boldspilklub AS 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 Aalborg Boldspilklub 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 Aalborg Boldspilklub AS 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 Aalborg Boldspilklub i.e., Aalborg Boldspilklub and Dow Jones go up and down completely randomly.
Pair Corralation between Aalborg Boldspilklub and Dow Jones
Assuming the 90 days trading horizon Aalborg Boldspilklub AS is expected to under-perform the Dow Jones. In addition to that, Aalborg Boldspilklub is 3.29 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 0.17 per unit of volatility. If you would invest 4,329,703 in Dow Jones Industrial on October 26, 2024 and sell it today you would earn a total of 112,722 from holding Dow Jones Industrial or generate 2.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Aalborg Boldspilklub AS vs. Dow Jones Industrial
Performance |
| Timeline |
Aalborg Boldspilklub and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Aalborg Boldspilklub AS
Pair trading matchups for Aalborg Boldspilklub
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Aalborg Boldspilklub and Dow Jones
The main advantage of trading using opposite Aalborg Boldspilklub and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aalborg Boldspilklub 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.| Aalborg Boldspilklub vs. PARKEN Sport Entertainment | Aalborg Boldspilklub vs. Broendbyernes IF Fodbold | Aalborg Boldspilklub vs. Silkeborg IF Invest | Aalborg Boldspilklub vs. Kreditbanken AS |
| Dow Jones vs. Asure Software | Dow Jones vs. Amkor Technology | Dow Jones vs. Radcom | Dow Jones vs. Senmiao Technology |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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