Correlation Between Dana and 097023AQ8
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By analyzing existing cross correlation between Dana Inc and BA 75 15 AUG 42, you can compare the effects of market volatilities on Dana and 097023AQ8 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 Dana with a short position of 097023AQ8. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dana and 097023AQ8.
Diversification Opportunities for Dana and 097023AQ8
Very good diversification
The 3 months correlation between Dana and 097023AQ8 is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Dana Inc and BA 75 15 AUG 42 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 097023AQ8 and Dana 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 Dana Inc are associated (or correlated) with 097023AQ8. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 097023AQ8 has no effect on the direction of Dana i.e., Dana and 097023AQ8 go up and down completely randomly.
Pair Corralation between Dana and 097023AQ8
Considering the 90-day investment horizon Dana Inc is expected to generate 1.92 times more return on investment than 097023AQ8. However, Dana is 1.92 times more volatile than BA 75 15 AUG 42. It trades about 0.01 of its potential returns per unit of risk. BA 75 15 AUG 42 is currently generating about -0.05 per unit of risk. If you would invest 1,039 in Dana Inc on August 29, 2024 and sell it today you would lose (27.00) from holding Dana Inc or give up 2.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 34.78% |
| Values | Daily Returns |
Dana Inc vs. BA 75 15 AUG 42
Performance |
| Timeline |
| Dana Inc |
| 097023AQ8 |
Dana and 097023AQ8 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dana and 097023AQ8
The main advantage of trading using opposite Dana and 097023AQ8 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dana position performs unexpectedly, 097023AQ8 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 097023AQ8 will offset losses from the drop in 097023AQ8's long position.The idea behind Dana Inc and BA 75 15 AUG 42 pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| 097023AQ8 vs. SEI Investments | 097023AQ8 vs. U Power Limited | 097023AQ8 vs. Lipocine | 097023AQ8 vs. Dana Inc |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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