Correlation Between Enogia SAS and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Enogia SAS 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 Enogia SAS and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Enogia SAS and Dow Jones Industrial, you can compare the effects of market volatilities on Enogia SAS 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 Enogia SAS with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enogia SAS and Dow Jones.
Diversification Opportunities for Enogia SAS and Dow Jones
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Enogia and Dow is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Enogia SAS 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 Enogia SAS 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 Enogia SAS 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 Enogia SAS i.e., Enogia SAS and Dow Jones go up and down completely randomly.
Pair Corralation between Enogia SAS and Dow Jones
Assuming the 90 days trading horizon Enogia SAS is expected to under-perform the Dow Jones. In addition to that, Enogia SAS is 3.49 times more volatile than Dow Jones Industrial. It trades about -0.04 of its total potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.08 per unit of volatility. If you would invest 3,347,646 in Dow Jones Industrial on August 30, 2024 and sell it today you would earn a total of 1,124,560 from holding Dow Jones Industrial or generate 33.59% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 98.21% |
Values | Daily Returns |
Enogia SAS vs. Dow Jones Industrial
Performance |
Timeline |
Enogia SAS and Dow Jones Volatility Contrast
Predicted Return Density |
Returns |
Enogia SAS
Pair trading matchups for Enogia SAS
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Enogia SAS and Dow Jones
The main advantage of trading using opposite Enogia SAS and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enogia SAS 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.Enogia SAS vs. LVMH Mot Hennessy | Enogia SAS vs. LOreal SA | Enogia SAS vs. Hermes International SCA | Enogia SAS vs. Manitou BF SA |
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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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