Correlation Between ACL Cables and Dow Jones
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By analyzing existing cross correlation between ACL Cables PLC and Dow Jones Industrial, you can compare the effects of market volatilities on ACL Cables 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 ACL Cables with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of ACL Cables and Dow Jones.
Diversification Opportunities for ACL Cables and Dow Jones
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ACL and Dow is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding ACL Cables PLC 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 ACL Cables 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 ACL Cables PLC 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 ACL Cables i.e., ACL Cables and Dow Jones go up and down completely randomly.
Pair Corralation between ACL Cables and Dow Jones
Assuming the 90 days trading horizon ACL Cables is expected to generate 1.1 times less return on investment than Dow Jones. In addition to that, ACL Cables is 2.36 times more volatile than Dow Jones Industrial. It trades about 0.03 of its total potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.08 per unit of volatility. If you would invest 3,400,504 in Dow Jones Industrial on September 2, 2024 and sell it today you would earn a total of 1,090,561 from holding Dow Jones Industrial or generate 32.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.77% |
| Values | Daily Returns |
ACL Cables PLC vs. Dow Jones Industrial
Performance |
| Timeline |
ACL Cables and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
ACL Cables PLC
Pair trading matchups for ACL Cables
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with ACL Cables and Dow Jones
The main advantage of trading using opposite ACL Cables and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ACL Cables 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.| ACL Cables vs. Commercial Credit and | ACL Cables vs. BROWNS INVESTMENTS PLC | ACL Cables vs. Arpico Insurance | ACL Cables vs. Sampath Bank PLC |
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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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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