Correlation Between American International and Dow Jones
Can any of the company-specific risk be diversified away by investing in both American International 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 American International and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American International Ventures and Dow Jones Industrial, you can compare the effects of market volatilities on American International 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 American International with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of American International and Dow Jones.
Diversification Opportunities for American International and Dow Jones
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between American and Dow is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding American International Venture 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 American International 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 American International Ventures 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 American International i.e., American International and Dow Jones go up and down completely randomly.
Pair Corralation between American International and Dow Jones
If you would invest 4,238,757 in Dow Jones Industrial on August 29, 2024 and sell it today you would earn a total of 247,274 from holding Dow Jones Industrial or generate 5.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
American International Venture vs. Dow Jones Industrial
Performance |
| Timeline |
American International and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
American International Ventures
Pair trading matchups for American International
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with American International and Dow Jones
The main advantage of trading using opposite American International and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American International 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.| American International vs. Labrador Gold Corp | American International vs. Aurion Resources | American International vs. Puma Exploration | American International vs. Golden Star Resource |
| Dow Jones vs. Kaltura | Dow Jones vs. Artisan Partners Asset | Dow Jones vs. US Global Investors | Dow Jones vs. Analog Devices |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |