Correlation Between ASK AUTOMOTIVE and Dow Jones
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By analyzing existing cross correlation between ASK AUTOMOTIVE LIMITED and Dow Jones Industrial, you can compare the effects of market volatilities on ASK AUTOMOTIVE 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 ASK AUTOMOTIVE with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of ASK AUTOMOTIVE and Dow Jones.
Diversification Opportunities for ASK AUTOMOTIVE and Dow Jones
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ASK and Dow is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding ASK AUTOMOTIVE LIMITED 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 ASK AUTOMOTIVE 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 ASK AUTOMOTIVE LIMITED 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 ASK AUTOMOTIVE i.e., ASK AUTOMOTIVE and Dow Jones go up and down completely randomly.
Pair Corralation between ASK AUTOMOTIVE and Dow Jones
Assuming the 90 days trading horizon ASK AUTOMOTIVE LIMITED is expected to generate 2.21 times more return on investment than Dow Jones. However, ASK AUTOMOTIVE is 2.21 times more volatile than Dow Jones Industrial. It trades about 0.11 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.22 per unit of risk. If you would invest 41,445 in ASK AUTOMOTIVE LIMITED on August 27, 2024 and sell it today you would earn a total of 1,810 from holding ASK AUTOMOTIVE LIMITED or generate 4.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
ASK AUTOMOTIVE LIMITED vs. Dow Jones Industrial
Performance |
| Timeline |
ASK AUTOMOTIVE and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
ASK AUTOMOTIVE LIMITED
Pair trading matchups for ASK AUTOMOTIVE
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with ASK AUTOMOTIVE and Dow Jones
The main advantage of trading using opposite ASK AUTOMOTIVE and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ASK AUTOMOTIVE 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.| ASK AUTOMOTIVE vs. The State Trading | ASK AUTOMOTIVE vs. Bharat Road Network | ASK AUTOMOTIVE vs. Jindal Poly Investment | ASK AUTOMOTIVE vs. SINCLAIRS HOTELS ORD |
| Dow Jones vs. Meiwu Technology Co | Dow Jones vs. 17 Education Technology | Dow Jones vs. 51Talk Online Education | Dow Jones vs. Afya |
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.
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