Correlation Between Dow Jones and Duksan Hi
Can any of the company-specific risk be diversified away by investing in both Dow Jones and Duksan Hi 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 Dow Jones and Duksan Hi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dow Jones Industrial and Duksan Hi Metal, you can compare the effects of market volatilities on Dow Jones and Duksan Hi 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 Duksan Hi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and Duksan Hi.
Diversification Opportunities for Dow Jones and Duksan Hi
Pay attention - limited upside
The 3 months correlation between Dow and Duksan is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial and Duksan Hi Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Duksan Hi Metal 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 Duksan Hi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Duksan Hi Metal has no effect on the direction of Dow Jones i.e., Dow Jones and Duksan Hi go up and down completely randomly.
Pair Corralation between Dow Jones and Duksan Hi
Assuming the 90 days trading horizon Dow Jones Industrial is expected to generate 0.22 times more return on investment than Duksan Hi. However, Dow Jones Industrial is 4.59 times less risky than Duksan Hi. It trades about 0.07 of its potential returns per unit of risk. Duksan Hi Metal is currently generating about -0.01 per unit of risk. If you would invest 3,394,710 in Dow Jones Industrial on August 24, 2024 and sell it today you would earn a total of 992,325 from holding Dow Jones Industrial or generate 29.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 97.38% |
| Values | Daily Returns |
Dow Jones Industrial vs. Duksan Hi Metal
Performance |
| Timeline |
Dow Jones and Duksan Hi Volatility Contrast
Predicted Return Density |
| Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
Duksan Hi Metal
Pair trading matchups for Duksan Hi
Pair Trading with Dow Jones and Duksan Hi
The main advantage of trading using opposite Dow Jones and Duksan Hi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones position performs unexpectedly, Duksan Hi 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 Duksan Hi will offset losses from the drop in Duksan Hi's long position.| Dow Jones vs. Sphere Entertainment Co | Dow Jones vs. Perseus Mining Limited | Dow Jones vs. Titan Machinery | Dow Jones vs. Simon Property Group |
| Duksan Hi vs. Korea Real Estate | Duksan Hi vs. Korea Ratings Co | Duksan Hi vs. IQuest Co | Duksan Hi vs. Wonbang Tech Co |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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