Correlation Between Creepy Jar and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Creepy Jar 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 Creepy Jar and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Creepy Jar SA and Dow Jones Industrial, you can compare the effects of market volatilities on Creepy Jar 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 Creepy Jar with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Creepy Jar and Dow Jones.
Diversification Opportunities for Creepy Jar and Dow Jones
-0.86 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Creepy and Dow is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding Creepy Jar SA 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 Creepy Jar 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 Creepy Jar SA 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 Creepy Jar i.e., Creepy Jar and Dow Jones go up and down completely randomly.
Pair Corralation between Creepy Jar and Dow Jones
Assuming the 90 days trading horizon Creepy Jar SA is expected to generate 151.96 times more return on investment than Dow Jones. However, Creepy Jar is 151.96 times more volatile than Dow Jones Industrial. It trades about 0.1 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.08 per unit of risk. If you would invest 66,665 in Creepy Jar SA on September 3, 2024 and sell it today you would lose (39,665) from holding Creepy Jar SA or give up 59.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 98.8% |
| Values | Daily Returns |
Creepy Jar SA vs. Dow Jones Industrial
Performance |
| Timeline |
Creepy Jar and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Creepy Jar SA
Pair trading matchups for Creepy Jar
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Creepy Jar and Dow Jones
The main advantage of trading using opposite Creepy Jar and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Creepy Jar 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.| Creepy Jar vs. Banco Santander SA | Creepy Jar vs. UniCredit SpA | Creepy Jar vs. CEZ as | Creepy Jar vs. Polski Koncern Naftowy |
| Dow Jones vs. Eastern Co | Dow Jones vs. Uber Technologies | Dow Jones vs. AKITA Drilling | Dow Jones vs. Chemours Co |
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.
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