Correlation Between WESANA HEALTH and Dow Jones
Can any of the company-specific risk be diversified away by investing in both WESANA HEALTH 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 WESANA HEALTH and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WESANA HEALTH HOLD and Dow Jones Industrial, you can compare the effects of market volatilities on WESANA HEALTH 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 WESANA HEALTH with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of WESANA HEALTH and Dow Jones.
Diversification Opportunities for WESANA HEALTH and Dow Jones
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between WESANA and Dow is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding WESANA HEALTH HOLD 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 WESANA HEALTH 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 WESANA HEALTH HOLD 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 WESANA HEALTH i.e., WESANA HEALTH and Dow Jones go up and down completely randomly.
Pair Corralation between WESANA HEALTH and Dow Jones
Assuming the 90 days horizon WESANA HEALTH HOLD is expected to generate 79.51 times more return on investment than Dow Jones. However, WESANA HEALTH is 79.51 times more volatile than Dow Jones Industrial. It trades about 0.11 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 2.60 in WESANA HEALTH HOLD on October 26, 2024 and sell it today you would lose (2.45) from holding WESANA HEALTH HOLD or give up 94.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.0% |
| Values | Daily Returns |
WESANA HEALTH HOLD vs. Dow Jones Industrial
Performance |
| Timeline |
WESANA HEALTH and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
WESANA HEALTH HOLD
Pair trading matchups for WESANA HEALTH
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with WESANA HEALTH and Dow Jones
The main advantage of trading using opposite WESANA HEALTH and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WESANA HEALTH 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.| WESANA HEALTH vs. CAL MAINE FOODS | WESANA HEALTH vs. Guidewire Software | WESANA HEALTH vs. EBRO FOODS | WESANA HEALTH vs. Nomad Foods |
| Dow Jones vs. Westrock Coffee | Dow Jones vs. Lipocine | Dow Jones vs. Regeneron Pharmaceuticals | Dow Jones vs. Summit Therapeutics PLC |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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