Correlation Between Chemcon Speciality and Dow Jones
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By analyzing existing cross correlation between Chemcon Speciality Chemicals and Dow Jones Industrial, you can compare the effects of market volatilities on Chemcon Speciality 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 Chemcon Speciality with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chemcon Speciality and Dow Jones.
Diversification Opportunities for Chemcon Speciality and Dow Jones
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Chemcon and Dow is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Chemcon Speciality Chemicals 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 Chemcon Speciality 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 Chemcon Speciality Chemicals 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 Chemcon Speciality i.e., Chemcon Speciality and Dow Jones go up and down completely randomly.
Pair Corralation between Chemcon Speciality and Dow Jones
Assuming the 90 days trading horizon Chemcon Speciality Chemicals is expected to under-perform the Dow Jones. In addition to that, Chemcon Speciality is 2.77 times more volatile than Dow Jones Industrial. It trades about -0.03 of its total potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.1 per unit of volatility. If you would invest 3,851,984 in Dow Jones Industrial on August 29, 2024 and sell it today you would earn a total of 634,047 from holding Dow Jones Industrial or generate 16.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 97.61% |
| Values | Daily Returns |
Chemcon Speciality Chemicals vs. Dow Jones Industrial
Performance |
| Timeline |
Chemcon Speciality and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Chemcon Speciality Chemicals
Pair trading matchups for Chemcon Speciality
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Chemcon Speciality and Dow Jones
The main advantage of trading using opposite Chemcon Speciality and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chemcon Speciality 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.| Chemcon Speciality vs. Steel Authority of | Chemcon Speciality vs. Embassy Office Parks | Chemcon Speciality vs. JTL Industries |
| Dow Jones vs. Kaltura | Dow Jones vs. Artisan Partners Asset | Dow Jones vs. US Global Investors | Dow Jones vs. Analog Devices |
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 CEOs Directory module to screen CEOs from public companies around the world.
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