Correlation Between AGFiQ Market and Dow Jones
Can any of the company-specific risk be diversified away by investing in both AGFiQ Market 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 AGFiQ Market and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AGFiQ Market Neutral and Dow Jones Industrial, you can compare the effects of market volatilities on AGFiQ Market 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 AGFiQ Market with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGFiQ Market and Dow Jones.
Diversification Opportunities for AGFiQ Market and Dow Jones
-0.86 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AGFiQ and Dow is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding AGFiQ Market Neutral 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 AGFiQ Market 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 AGFiQ Market Neutral 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 AGFiQ Market i.e., AGFiQ Market and Dow Jones go up and down completely randomly.
Pair Corralation between AGFiQ Market and Dow Jones
Given the investment horizon of 90 days AGFiQ Market is expected to generate 7.8 times less return on investment than Dow Jones. In addition to that, AGFiQ Market is 1.5 times more volatile than Dow Jones Industrial. It trades about 0.01 of its total potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.13 per unit of volatility. If you would invest 3,541,698 in Dow Jones Industrial on August 24, 2024 and sell it today you would earn a total of 845,337 from holding Dow Jones Industrial or generate 23.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AGFiQ Market Neutral vs. Dow Jones Industrial
Performance |
| Timeline |
AGFiQ Market and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
AGFiQ Market Neutral
Pair trading matchups for AGFiQ Market
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with AGFiQ Market and Dow Jones
The main advantage of trading using opposite AGFiQ Market and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGFiQ Market 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.| AGFiQ Market vs. Cambria Tail Risk | AGFiQ Market vs. IQ Merger Arbitrage | AGFiQ Market vs. Amplify BlackSwan Growth | AGFiQ Market vs. AdvisorShares Dorsey Wright |
| Dow Jones vs. Sphere Entertainment Co | Dow Jones vs. Perseus Mining Limited | Dow Jones vs. Titan Machinery | Dow Jones vs. Simon Property Group |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |