Correlation Between ABF Thailand and Dow Jones
Can any of the company-specific risk be diversified away by investing in both ABF Thailand 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 ABF Thailand and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The ABF Thailand and Dow Jones Industrial, you can compare the effects of market volatilities on ABF Thailand 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 ABF Thailand with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of ABF Thailand and Dow Jones.
Diversification Opportunities for ABF Thailand and Dow Jones
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ABF and Dow is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding The ABF Thailand 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 ABF Thailand 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 The ABF Thailand 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 ABF Thailand i.e., ABF Thailand and Dow Jones go up and down completely randomly.
Pair Corralation between ABF Thailand and Dow Jones
If you would invest 4,284,026 in Dow Jones Industrial on October 21, 2024 and sell it today you would earn a total of 64,757 from holding Dow Jones Industrial or generate 1.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 60.0% |
| Values | Daily Returns |
The ABF Thailand vs. Dow Jones Industrial
Performance |
| Timeline |
ABF Thailand and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
The ABF Thailand
Pair trading matchups for ABF Thailand
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with ABF Thailand and Dow Jones
The main advantage of trading using opposite ABF Thailand and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ABF Thailand 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.| ABF Thailand vs. BCAP SET100 | ABF Thailand vs. WISE KTAM CSI | ABF Thailand vs. KTAM Gold ETF | ABF Thailand vs. ThaiDEX SET High |
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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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