Correlation Between CurrentC Power and Dow Jones
Can any of the company-specific risk be diversified away by investing in both CurrentC Power 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 CurrentC Power and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CurrentC Power and Dow Jones Industrial, you can compare the effects of market volatilities on CurrentC Power 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 CurrentC Power with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of CurrentC Power and Dow Jones.
Diversification Opportunities for CurrentC Power and Dow Jones
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between CurrentC and Dow is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding CurrentC Power 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 CurrentC Power 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 CurrentC Power 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 CurrentC Power i.e., CurrentC Power and Dow Jones go up and down completely randomly.
Pair Corralation between CurrentC Power and Dow Jones
Given the investment horizon of 90 days CurrentC Power is expected to generate 272.02 times more return on investment than Dow Jones. However, CurrentC Power is 272.02 times more volatile than Dow Jones Industrial. It trades about 0.27 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.2 per unit of risk. If you would invest 8.31 in CurrentC Power on November 18, 2024 and sell it today you would earn a total of 7.69 from holding CurrentC Power or generate 92.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CurrentC Power vs. Dow Jones Industrial
Performance |
| Timeline |
CurrentC Power and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
CurrentC Power
Pair trading matchups for CurrentC Power
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with CurrentC Power and Dow Jones
The main advantage of trading using opposite CurrentC Power and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CurrentC Power 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.| CurrentC Power vs. Oasis Hotel Resort | CurrentC Power vs. Target Hospitality Corp | CurrentC Power vs. RCI Hospitality Holdings | CurrentC Power vs. Playa Hotels Resorts |
| Dow Jones vs. Palomar Holdings | Dow Jones vs. Mesa Air Group | Dow Jones vs. LATAM Airlines Group | Dow Jones vs. Unum Group |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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