Correlation Between Ault Alliance and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Ault Alliance 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 Alliance 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 Alliance and Dow Jones Industrial, you can compare the effects of market volatilities on Ault Alliance 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 Alliance with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ault Alliance and Dow Jones.
Diversification Opportunities for Ault Alliance and Dow Jones
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Ault and Dow is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Ault Alliance 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 Alliance 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 Alliance 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 Alliance i.e., Ault Alliance and Dow Jones go up and down completely randomly.
Pair Corralation between Ault Alliance and Dow Jones
If you would invest 4,179,460 in Dow Jones Industrial on September 4, 2024 and sell it today you would earn a total of 298,740 from holding Dow Jones Industrial or generate 7.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Ault Alliance vs. Dow Jones Industrial
Performance |
| Timeline |
Ault Alliance and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Ault Alliance
Pair trading matchups for Ault Alliance
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Ault Alliance and Dow Jones
The main advantage of trading using opposite Ault Alliance and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ault Alliance 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 Alliance vs. Femasys | Ault Alliance vs. Hudson Pacific Properties | Ault Alliance vs. Diageo PLC ADR | Ault Alliance vs. The Coca Cola |
| Dow Jones vs. Gentex | Dow Jones vs. American Axle Manufacturing | Dow Jones vs. Pearson PLC ADR | Dow Jones vs. Marine Products |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |