Correlation Between Abraxas Petroleum and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Abraxas Petroleum 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 Abraxas Petroleum and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Abraxas Petroleum and Dow Jones Industrial, you can compare the effects of market volatilities on Abraxas Petroleum 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 Abraxas Petroleum with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Abraxas Petroleum and Dow Jones.
Diversification Opportunities for Abraxas Petroleum and Dow Jones
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Abraxas and Dow is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Abraxas Petroleum 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 Abraxas Petroleum 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 Abraxas Petroleum 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 Abraxas Petroleum i.e., Abraxas Petroleum and Dow Jones go up and down completely randomly.
Pair Corralation between Abraxas Petroleum and Dow Jones
If you would invest 4,205,219 in Dow Jones Industrial on September 2, 2024 and sell it today you would earn a total of 285,846 from holding Dow Jones Industrial or generate 6.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Abraxas Petroleum vs. Dow Jones Industrial
Performance |
| Timeline |
Abraxas Petroleum and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Abraxas Petroleum
Pair trading matchups for Abraxas Petroleum
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Abraxas Petroleum and Dow Jones
The main advantage of trading using opposite Abraxas Petroleum and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Abraxas Petroleum 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.| Abraxas Petroleum vs. Tullow Oil plc | Abraxas Petroleum vs. Rockhopper Exploration plc | Abraxas Petroleum vs. Civitas Resources | Abraxas Petroleum vs. Civitas Resources |
| Dow Jones vs. Dream Finders Homes | Dow Jones vs. GEN Restaurant Group, | Dow Jones vs. National Beverage Corp | Dow Jones vs. BJs Restaurants |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |