Correlation Between Bonava AB and Dow Jones
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By analyzing existing cross correlation between Bonava AB and Dow Jones Industrial, you can compare the effects of market volatilities on Bonava AB 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 Bonava AB with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bonava AB and Dow Jones.
Diversification Opportunities for Bonava AB and Dow Jones
Good diversification
The 3 months correlation between Bonava and Dow is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Bonava AB 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 Bonava AB 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 Bonava AB 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 Bonava AB i.e., Bonava AB and Dow Jones go up and down completely randomly.
Pair Corralation between Bonava AB and Dow Jones
Assuming the 90 days trading horizon Bonava AB is expected to generate 4.99 times more return on investment than Dow Jones. However, Bonava AB is 4.99 times more volatile than Dow Jones Industrial. It trades about 0.12 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about -0.21 per unit of risk. If you would invest 1,020 in Bonava AB on November 28, 2024 and sell it today you would earn a total of 75.00 from holding Bonava AB or generate 7.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Bonava AB vs. Dow Jones Industrial
Performance |
| Timeline |
Bonava AB and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Bonava AB
Pair trading matchups for Bonava AB
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Bonava AB and Dow Jones
The main advantage of trading using opposite Bonava AB and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bonava AB 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.| Bonava AB vs. Bonava AB | Bonava AB vs. Atrium Ljungberg AB | Bonava AB vs. Attendo AB | Bonava AB vs. NCC AB |
| Dow Jones vs. Gladstone Investment | Dow Jones vs. BW Offshore Limited | Dow Jones vs. Fidus Investment Corp | Dow Jones vs. Aperture Health |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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