Correlation Between Dow Jones and CTBC 15
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By analyzing existing cross correlation between Dow Jones Industrial and CTBC 15 Developed, you can compare the effects of market volatilities on Dow Jones and CTBC 15 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 CTBC 15. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and CTBC 15.
Diversification Opportunities for Dow Jones and CTBC 15
Very good diversification
The 3 months correlation between Dow and CTBC is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial and CTBC 15 Developed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CTBC 15 Developed 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 CTBC 15. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CTBC 15 Developed has no effect on the direction of Dow Jones i.e., Dow Jones and CTBC 15 go up and down completely randomly.
Pair Corralation between Dow Jones and CTBC 15
Assuming the 90 days trading horizon Dow Jones Industrial is expected to generate 1.07 times more return on investment than CTBC 15. However, Dow Jones is 1.07 times more volatile than CTBC 15 Developed. It trades about 0.08 of its potential returns per unit of risk. CTBC 15 Developed is currently generating about 0.01 per unit of risk. If you would invest 3,410,864 in Dow Jones Industrial on September 3, 2024 and sell it today you would earn a total of 1,080,201 from holding Dow Jones Industrial or generate 31.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 96.97% |
| Values | Daily Returns |
Dow Jones Industrial vs. CTBC 15 Developed
Performance |
| Timeline |
Dow Jones and CTBC 15 Volatility Contrast
Predicted Return Density |
| Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
CTBC 15 Developed
Pair trading matchups for CTBC 15
Pair Trading with Dow Jones and CTBC 15
The main advantage of trading using opposite Dow Jones and CTBC 15 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones position performs unexpectedly, CTBC 15 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 CTBC 15 will offset losses from the drop in CTBC 15's long position.| Dow Jones vs. Eastern Co | Dow Jones vs. Uber Technologies | Dow Jones vs. AKITA Drilling | Dow Jones vs. Chemours Co |
| CTBC 15 vs. CTBC USD Corporate | CTBC 15 vs. CTBC 20 Year | CTBC 15 vs. CTBC TIP Customized | CTBC 15 vs. CTBC Treasury 20 |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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