Correlation Between Farmacias Benavides and Dow Jones
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By analyzing existing cross correlation between Farmacias Benavides SAB and Dow Jones Industrial, you can compare the effects of market volatilities on Farmacias Benavides 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 Farmacias Benavides with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Farmacias Benavides and Dow Jones.
Diversification Opportunities for Farmacias Benavides and Dow Jones
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Farmacias and Dow is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Farmacias Benavides SAB 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 Farmacias Benavides 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 Farmacias Benavides SAB 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 Farmacias Benavides i.e., Farmacias Benavides and Dow Jones go up and down completely randomly.
Pair Corralation between Farmacias Benavides and Dow Jones
Assuming the 90 days trading horizon Farmacias Benavides SAB is expected to generate 7.56 times more return on investment than Dow Jones. However, Farmacias Benavides is 7.56 times more volatile than Dow Jones Industrial. It trades about 0.08 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.02 per unit of risk. If you would invest 1,999 in Farmacias Benavides SAB on September 15, 2024 and sell it today you would earn a total of 101.00 from holding Farmacias Benavides SAB or generate 5.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Farmacias Benavides SAB vs. Dow Jones Industrial
Performance |
| Timeline |
Farmacias Benavides and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Farmacias Benavides SAB
Pair trading matchups for Farmacias Benavides
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Farmacias Benavides and Dow Jones
The main advantage of trading using opposite Farmacias Benavides and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Farmacias Benavides 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.| Farmacias Benavides vs. McEwen Mining | Farmacias Benavides vs. Cognizant Technology Solutions | Farmacias Benavides vs. FIBRA Storage | Farmacias Benavides vs. GMxico Transportes SAB |
| Dow Jones vs. Wallbox NV | Dow Jones vs. LithiumBank Resources Corp | Dow Jones vs. Marine Products | Dow Jones vs. Arrow Financial |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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