Correlation Between Dow Jones and Cathay Bloomberg
Specify exactly 2 symbols:
By analyzing existing cross correlation between Dow Jones Industrial and Cathay Bloomberg Barclays, you can compare the effects of market volatilities on Dow Jones and Cathay Bloomberg 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 Dow Jones with a short position of Cathay Bloomberg. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and Cathay Bloomberg.
Diversification Opportunities for Dow Jones and Cathay Bloomberg
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Dow and Cathay is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial and Cathay Bloomberg Barclays in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cathay Bloomberg Barclays and Dow Jones 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 Dow Jones Industrial are associated (or correlated) with Cathay Bloomberg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cathay Bloomberg Barclays has no effect on the direction of Dow Jones i.e., Dow Jones and Cathay Bloomberg go up and down completely randomly.
Pair Corralation between Dow Jones and Cathay Bloomberg
Assuming the 90 days trading horizon Dow Jones Industrial is expected to generate 1.39 times more return on investment than Cathay Bloomberg. However, Dow Jones is 1.39 times more volatile than Cathay Bloomberg Barclays. It trades about 0.26 of its potential returns per unit of risk. Cathay Bloomberg Barclays is currently generating about 0.08 per unit of risk. If you would invest 4,238,757 in Dow Jones Industrial on August 28, 2024 and sell it today you would earn a total of 234,900 from holding Dow Jones Industrial or generate 5.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dow Jones Industrial vs. Cathay Bloomberg Barclays
Performance |
| Timeline |
Dow Jones and Cathay Bloomberg Volatility Contrast
Predicted Return Density |
| Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
Cathay Bloomberg Barclays
Pair trading matchups for Cathay Bloomberg
Pair Trading with Dow Jones and Cathay Bloomberg
The main advantage of trading using opposite Dow Jones and Cathay Bloomberg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones position performs unexpectedly, Cathay Bloomberg 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 Cathay Bloomberg will offset losses from the drop in Cathay Bloomberg's long position.| Dow Jones vs. Meiwu Technology Co | Dow Jones vs. 17 Education Technology | Dow Jones vs. 51Talk Online Education | Dow Jones vs. Afya |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |