Correlation Between Dana and 75513ECR0
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By analyzing existing cross correlation between Dana Inc and RTX 515 27 FEB 33, you can compare the effects of market volatilities on Dana and 75513ECR0 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 75513ECR0. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dana and 75513ECR0.
Diversification Opportunities for Dana and 75513ECR0
Very weak diversification
The 3 months correlation between Dana and 75513ECR0 is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Dana Inc and RTX 515 27 FEB 33 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RTX 515 27 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 75513ECR0. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RTX 515 27 has no effect on the direction of Dana i.e., Dana and 75513ECR0 go up and down completely randomly.
Pair Corralation between Dana and 75513ECR0
Considering the 90-day investment horizon Dana Inc is expected to generate 9.68 times more return on investment than 75513ECR0. However, Dana is 9.68 times more volatile than RTX 515 27 FEB 33. It trades about -0.01 of its potential returns per unit of risk. RTX 515 27 FEB 33 is currently generating about -0.11 per unit of risk. If you would invest 1,075 in Dana Inc on September 3, 2024 and sell it today you would lose (75.00) from holding Dana Inc or give up 6.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 96.88% |
| Values | Daily Returns |
Dana Inc vs. RTX 515 27 FEB 33
Performance |
| Timeline |
| Dana Inc |
| RTX 515 27 |
Dana and 75513ECR0 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dana and 75513ECR0
The main advantage of trading using opposite Dana and 75513ECR0 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dana position performs unexpectedly, 75513ECR0 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 75513ECR0 will offset losses from the drop in 75513ECR0's long position.The idea behind Dana Inc and RTX 515 27 FEB 33 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.| 75513ECR0 vs. Lucid Group | 75513ECR0 vs. Dana Inc | 75513ECR0 vs. Rivian Automotive | 75513ECR0 vs. Amgen 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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