Correlation Between Aenza SAA and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Aenza SAA 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 Aenza SAA and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aenza SAA and Dow Jones Industrial, you can compare the effects of market volatilities on Aenza SAA 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 Aenza SAA with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aenza SAA and Dow Jones.
Diversification Opportunities for Aenza SAA and Dow Jones
Excellent diversification
The 3 months correlation between Aenza and Dow is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Aenza SAA 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 Aenza SAA 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 Aenza SAA 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 Aenza SAA i.e., Aenza SAA and Dow Jones go up and down completely randomly.
Pair Corralation between Aenza SAA and Dow Jones
If you would invest 4,093,693 in Dow Jones Industrial on September 3, 2024 and sell it today you would earn a total of 397,372 from holding Dow Jones Industrial or generate 9.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 1.56% |
| Values | Daily Returns |
Aenza SAA vs. Dow Jones Industrial
Performance |
| Timeline |
Aenza SAA and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Aenza SAA
Pair trading matchups for Aenza SAA
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Aenza SAA and Dow Jones
The main advantage of trading using opposite Aenza SAA and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aenza SAA 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.| Aenza SAA vs. Bowman Consulting Group | Aenza SAA vs. Api Group Corp | Aenza SAA vs. ACS Actividades de | Aenza SAA vs. ACS Actividades De |
| 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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