Correlation Between Bantek and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Bantek 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 Bantek and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bantek Inc and Dow Jones Industrial, you can compare the effects of market volatilities on Bantek 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 Bantek with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bantek and Dow Jones.
Diversification Opportunities for Bantek and Dow Jones
Excellent diversification
The 3 months correlation between Bantek and Dow is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Bantek Inc 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 Bantek 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 Bantek Inc 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 Bantek i.e., Bantek and Dow Jones go up and down completely randomly.
Pair Corralation between Bantek and Dow Jones
Given the investment horizon of 90 days Bantek Inc is expected to generate 21.7 times more return on investment than Dow Jones. However, Bantek is 21.7 times more volatile than Dow Jones Industrial. It trades about 0.24 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.34 per unit of risk. If you would invest 0.12 in Bantek Inc on September 2, 2024 and sell it today you would earn a total of 0.11 from holding Bantek Inc or generate 91.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bantek Inc vs. Dow Jones Industrial
Performance |
| Timeline |
Bantek and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Bantek Inc
Pair trading matchups for Bantek
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Bantek and Dow Jones
The main advantage of trading using opposite Bantek and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bantek 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.| Bantek vs. Firan Technology Group | Bantek vs. 808 Renewable Energy | Bantek vs. Park Electrochemical | Bantek vs. Innovative Solutions and |
| 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |