Correlation Between ASG Corp and Dow Jones
Can any of the company-specific risk be diversified away by investing in both ASG Corp 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 ASG Corp and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ASG Corp and Dow Jones Industrial, you can compare the effects of market volatilities on ASG Corp 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 ASG Corp with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of ASG Corp and Dow Jones.
Diversification Opportunities for ASG Corp and Dow Jones
Pay attention - limited upside
The 3 months correlation between ASG and Dow is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding ASG 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 ASG Corp 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 ASG 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 ASG Corp i.e., ASG Corp and Dow Jones go up and down completely randomly.
Pair Corralation between ASG Corp and Dow Jones
Assuming the 90 days trading horizon ASG Corp is expected to under-perform the Dow Jones. But the stock apears to be less risky and, when comparing its historical volatility, ASG Corp is 1.51 times less risky than Dow Jones. The stock trades about -0.11 of its potential returns per unit of risk. The Dow Jones Industrial is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 4,223,305 in Dow Jones Industrial on August 30, 2024 and sell it today you would earn a total of 248,901 from holding Dow Jones Industrial or generate 5.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ASG Corp vs. Dow Jones Industrial
Performance |
| Timeline |
ASG Corp and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
ASG Corp
Pair trading matchups for ASG Corp
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with ASG Corp and Dow Jones
The main advantage of trading using opposite ASG Corp and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ASG Corp 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.| ASG Corp vs. Development Investment Construction | ASG Corp vs. Transport and Industry | ASG Corp vs. Bao Ngoc Investment | ASG Corp vs. Taseco Air Services |
| Dow Jones vs. Skillful Craftsman Education | Dow Jones vs. Acco Brands | Dow Jones vs. Cracker Barrel Old | Dow Jones vs. Coursera |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |