Correlation Between Avalon GloboCare and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Avalon GloboCare 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 Avalon GloboCare and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Avalon GloboCare Corp and Dow Jones Industrial, you can compare the effects of market volatilities on Avalon GloboCare 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 Avalon GloboCare with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Avalon GloboCare and Dow Jones.
Diversification Opportunities for Avalon GloboCare and Dow Jones
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Avalon and Dow is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Avalon GloboCare Corp 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 Avalon GloboCare 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 Avalon GloboCare Corp 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 Avalon GloboCare i.e., Avalon GloboCare and Dow Jones go up and down completely randomly.
Pair Corralation between Avalon GloboCare and Dow Jones
Given the investment horizon of 90 days Avalon GloboCare Corp is expected to generate 15.96 times more return on investment than Dow Jones. However, Avalon GloboCare is 15.96 times more volatile than Dow Jones Industrial. It trades about 0.03 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.17 per unit of risk. If you would invest 326.00 in Avalon GloboCare Corp on August 28, 2024 and sell it today you would lose (53.00) from holding Avalon GloboCare Corp or give up 16.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Avalon GloboCare Corp vs. Dow Jones Industrial
Performance |
| Timeline |
Avalon GloboCare and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Avalon GloboCare Corp
Pair trading matchups for Avalon GloboCare
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Avalon GloboCare and Dow Jones
The main advantage of trading using opposite Avalon GloboCare and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Avalon GloboCare 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.| Avalon GloboCare vs. Ascendas India Trust | Avalon GloboCare vs. Asia Pptys | Avalon GloboCare vs. Adler Group SA | Avalon GloboCare vs. Aztec Land Comb |
| 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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