Correlation Between AULT Old and Dow Jones
Can any of the company-specific risk be diversified away by investing in both AULT Old 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 AULT Old and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AULT Old and Dow Jones Industrial, you can compare the effects of market volatilities on AULT Old 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 AULT Old with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of AULT Old and Dow Jones.
Diversification Opportunities for AULT Old and Dow Jones
Pay attention - limited upside
The 3 months correlation between AULT and Dow is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AULT Old 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 AULT Old 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 AULT Old 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 AULT Old i.e., AULT Old and Dow Jones go up and down completely randomly.
Pair Corralation between AULT Old and Dow Jones
If you would invest 4,290,695 in Dow Jones Industrial on October 24, 2024 and sell it today you would earn a total of 111,886 from holding Dow Jones Industrial or generate 2.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 5.26% |
| Values | Daily Returns |
AULT Old vs. Dow Jones Industrial
Performance |
| Timeline |
AULT Old and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
AULT Old
Pair trading matchups for AULT Old
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with AULT Old and Dow Jones
The main advantage of trading using opposite AULT Old and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AULT Old 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.| AULT Old vs. Air Lease | AULT Old vs. Japan Tobacco ADR | AULT Old vs. Mesa Air Group | AULT Old vs. Delta Air Lines |
| Dow Jones vs. Transocean | Dow Jones vs. Noble plc | Dow Jones vs. Evolution Gaming Group | Dow Jones vs. Addus HomeCare |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Global Correlations Find global opportunities by holding instruments from different markets |