Correlation Between BankInv GloAkColum and Dow Jones
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By analyzing existing cross correlation between BankInv GloAkColum Threadndl and Dow Jones Industrial, you can compare the effects of market volatilities on BankInv GloAkColum 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 BankInv GloAkColum with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of BankInv GloAkColum and Dow Jones.
Diversification Opportunities for BankInv GloAkColum and Dow Jones
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between BankInv and Dow is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding BankInv GloAkColum Threadndl 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 BankInv GloAkColum 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 BankInv GloAkColum Threadndl 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 BankInv GloAkColum i.e., BankInv GloAkColum and Dow Jones go up and down completely randomly.
Pair Corralation between BankInv GloAkColum and Dow Jones
Assuming the 90 days trading horizon BankInv GloAkColum is expected to generate 1.93 times less return on investment than Dow Jones. In addition to that, BankInv GloAkColum is 1.25 times more volatile than Dow Jones Industrial. It trades about 0.07 of its total potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.16 per unit of volatility. If you would invest 3,292,896 in Dow Jones Industrial on August 25, 2024 and sell it today you would earn a total of 1,136,755 from holding Dow Jones Industrial or generate 34.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 59.78% |
| Values | Daily Returns |
BankInv GloAkColum Threadndl vs. Dow Jones Industrial
Performance |
| Timeline |
BankInv GloAkColum and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
BankInv GloAkColum Threadndl
Pair trading matchups for BankInv GloAkColum
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with BankInv GloAkColum and Dow Jones
The main advantage of trading using opposite BankInv GloAkColum and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BankInv GloAkColum 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.| BankInv GloAkColum vs. BankInvest Value Globale | BankInv GloAkColum vs. Jyske Bank AS | BankInv GloAkColum vs. Laan Spar Bank | BankInv GloAkColum vs. Kreditbanken AS |
| Dow Jones vs. Vistra Energy Corp | Dow Jones vs. Fluence Energy | Dow Jones vs. Old Republic International | Dow Jones vs. Empresa Distribuidora y |
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.
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