Correlation Between BankInvest Emerging and Dow Jones
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By analyzing existing cross correlation between BankInvest Emerging and Dow Jones Industrial, you can compare the effects of market volatilities on BankInvest Emerging 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 BankInvest Emerging with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of BankInvest Emerging and Dow Jones.
Diversification Opportunities for BankInvest Emerging and Dow Jones
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between BankInvest and Dow is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding BankInvest Emerging 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 BankInvest Emerging 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 BankInvest Emerging 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 BankInvest Emerging i.e., BankInvest Emerging and Dow Jones go up and down completely randomly.
Pair Corralation between BankInvest Emerging and Dow Jones
Assuming the 90 days trading horizon BankInvest Emerging is expected to generate 4.17 times less return on investment than Dow Jones. But when comparing it to its historical volatility, BankInvest Emerging is 2.71 times less risky than Dow Jones. It trades about 0.11 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 4,109,677 in Dow Jones Industrial on September 12, 2024 and sell it today you would earn a total of 315,106 from holding Dow Jones Industrial or generate 7.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.44% |
| Values | Daily Returns |
BankInvest Emerging vs. Dow Jones Industrial
Performance |
| Timeline |
BankInvest Emerging and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
BankInvest Emerging
Pair trading matchups for BankInvest Emerging
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with BankInvest Emerging and Dow Jones
The main advantage of trading using opposite BankInvest Emerging and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BankInvest Emerging 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.| BankInvest Emerging vs. BankInvest Emerging | BankInvest Emerging vs. BankInvest Lange Danske | BankInvest Emerging vs. BankInvest Hjt | BankInvest Emerging vs. BankInvest Danske |
| Dow Jones vs. Aeye Inc | Dow Jones vs. Gentex | Dow Jones vs. Marine Products | Dow Jones vs. CarsalesCom Ltd ADR |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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