Correlation Between Afyon Cimento and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Afyon Cimento 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 Afyon Cimento and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Afyon Cimento Sanayi and Dow Jones Industrial, you can compare the effects of market volatilities on Afyon Cimento 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 Afyon Cimento with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Afyon Cimento and Dow Jones.
Diversification Opportunities for Afyon Cimento and Dow Jones
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Afyon and Dow is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Afyon Cimento Sanayi 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 Afyon Cimento 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 Afyon Cimento Sanayi 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 Afyon Cimento i.e., Afyon Cimento and Dow Jones go up and down completely randomly.
Pair Corralation between Afyon Cimento and Dow Jones
Assuming the 90 days trading horizon Afyon Cimento Sanayi is expected to generate 4.47 times more return on investment than Dow Jones. However, Afyon Cimento is 4.47 times more volatile than Dow Jones Industrial. It trades about 0.08 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.11 per unit of risk. If you would invest 701.00 in Afyon Cimento Sanayi on August 29, 2024 and sell it today you would earn a total of 752.00 from holding Afyon Cimento Sanayi or generate 107.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.49% |
| Values | Daily Returns |
Afyon Cimento Sanayi vs. Dow Jones Industrial
Performance |
| Timeline |
Afyon Cimento and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Afyon Cimento Sanayi
Pair trading matchups for Afyon Cimento
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Afyon Cimento and Dow Jones
The main advantage of trading using opposite Afyon Cimento and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Afyon Cimento 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.| Afyon Cimento vs. MEGA METAL | Afyon Cimento vs. E Data Teknoloji Pazarlama | Afyon Cimento vs. Gentas Genel Metal | Afyon Cimento vs. Politeknik Metal Sanayi |
| Dow Jones vs. CECO Environmental Corp | Dow Jones vs. Western Acquisition Ventures | Dow Jones vs. Tyson Foods | Dow Jones vs. Inflection Point Acquisition |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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