Correlation Between Citycon Oyj and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Citycon Oyj 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 Citycon Oyj and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citycon Oyj and Dow Jones Industrial, you can compare the effects of market volatilities on Citycon Oyj 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 Citycon Oyj with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citycon Oyj and Dow Jones.
Diversification Opportunities for Citycon Oyj and Dow Jones
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citycon and Dow is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Citycon Oyj 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 Citycon Oyj 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 Citycon Oyj 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 Citycon Oyj i.e., Citycon Oyj and Dow Jones go up and down completely randomly.
Pair Corralation between Citycon Oyj and Dow Jones
Assuming the 90 days trading horizon Citycon Oyj is expected to under-perform the Dow Jones. In addition to that, Citycon Oyj is 1.81 times more volatile than Dow Jones Industrial. It trades about -0.19 of its total potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.22 per unit of volatility. If you would invest 4,238,757 in Dow Jones Industrial on August 27, 2024 and sell it today you would earn a total of 190,894 from holding Dow Jones Industrial or generate 4.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citycon Oyj vs. Dow Jones Industrial
Performance |
| Timeline |
Citycon Oyj and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Citycon Oyj
Pair trading matchups for Citycon Oyj
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Citycon Oyj and Dow Jones
The main advantage of trading using opposite Citycon Oyj and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citycon Oyj 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.| Citycon Oyj vs. Sampo Oyj A | Citycon Oyj vs. Tokmanni Group Oyj | Citycon Oyj vs. Nordea Bank Abp | Citycon Oyj vs. Telia Company AB |
| Dow Jones vs. MI Homes | Dow Jones vs. Franklin Street Properties | Dow Jones vs. Summit Hotel Properties | Dow Jones vs. Portillos |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |