Correlation Between Dow Jones and KLP Aksje
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By analyzing existing cross correlation between Dow Jones Industrial and KLP Aksje Fremvoksende, you can compare the effects of market volatilities on Dow Jones and KLP Aksje 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 KLP Aksje. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and KLP Aksje.
Diversification Opportunities for Dow Jones and KLP Aksje
Very weak diversification
The 3 months correlation between Dow and KLP is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial and KLP Aksje Fremvoksende in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KLP Aksje Fremvoksende 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 KLP Aksje. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KLP Aksje Fremvoksende has no effect on the direction of Dow Jones i.e., Dow Jones and KLP Aksje go up and down completely randomly.
Pair Corralation between Dow Jones and KLP Aksje
Assuming the 90 days trading horizon Dow Jones Industrial is expected to generate 1.12 times more return on investment than KLP Aksje. However, Dow Jones is 1.12 times more volatile than KLP Aksje Fremvoksende. It trades about 0.37 of its potential returns per unit of risk. KLP Aksje Fremvoksende is currently generating about -0.19 per unit of risk. If you would invest 4,179,460 in Dow Jones Industrial on September 3, 2024 and sell it today you would earn a total of 298,740 from holding Dow Jones Industrial or generate 7.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
Dow Jones Industrial vs. KLP Aksje Fremvoksende
Performance |
| Timeline |
Dow Jones and KLP Aksje Volatility Contrast
Predicted Return Density |
| Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
KLP Aksje Fremvoksende
Pair trading matchups for KLP Aksje
Pair Trading with Dow Jones and KLP Aksje
The main advantage of trading using opposite Dow Jones and KLP Aksje positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones position performs unexpectedly, KLP Aksje 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 KLP Aksje will offset losses from the drop in KLP Aksje's long position.| Dow Jones vs. Eastern Co | Dow Jones vs. Uber Technologies | Dow Jones vs. AKITA Drilling | Dow Jones vs. Chemours Co |
| KLP Aksje vs. Franklin Floating Rate | KLP Aksje vs. Franklin Floating Rate | KLP Aksje vs. Franklin Floating Rate | KLP Aksje vs. Dalata Hotel Group |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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