Correlation Between Cencosud and Dow Jones
Specify exactly 2 symbols:
By analyzing existing cross correlation between Cencosud and Dow Jones Industrial, you can compare the effects of market volatilities on Cencosud 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 Cencosud with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cencosud and Dow Jones.
Diversification Opportunities for Cencosud and Dow Jones
Good diversification
The 3 months correlation between Cencosud and Dow is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Cencosud 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 Cencosud 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 Cencosud 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 Cencosud i.e., Cencosud and Dow Jones go up and down completely randomly.
Pair Corralation between Cencosud and Dow Jones
Assuming the 90 days trading horizon Cencosud is expected to generate 1.29 times more return on investment than Dow Jones. However, Cencosud is 1.29 times more volatile than Dow Jones Industrial. It trades about 0.51 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.19 per unit of risk. If you would invest 216,500 in Cencosud on October 25, 2024 and sell it today you would earn a total of 23,400 from holding Cencosud or generate 10.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cencosud vs. Dow Jones Industrial
Performance |
| Timeline |
Cencosud and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Cencosud
Pair trading matchups for Cencosud
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Cencosud and Dow Jones
The main advantage of trading using opposite Cencosud and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cencosud 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.| Cencosud vs. Falabella | Cencosud vs. Empresas Copec SA | Cencosud vs. Sociedad Qumica y | Cencosud vs. Banco Santander Chile |
| Dow Jones vs. Xiabuxiabu Catering Management | Dow Jones vs. Neogen | Dow Jones vs. Orion Office Reit | Dow Jones vs. Bassett Furniture Industries |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |