Correlation Between Dow Jones and KONTIGO CARE
Can any of the company-specific risk be diversified away by investing in both Dow Jones and KONTIGO CARE 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 KONTIGO CARE 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 KONTIGO CARE AB, you can compare the effects of market volatilities on Dow Jones and KONTIGO CARE 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 KONTIGO CARE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and KONTIGO CARE.
Diversification Opportunities for Dow Jones and KONTIGO CARE
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Dow and KONTIGO is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial and KONTIGO CARE AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KONTIGO CARE AB 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 KONTIGO CARE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KONTIGO CARE AB has no effect on the direction of Dow Jones i.e., Dow Jones and KONTIGO CARE go up and down completely randomly.
Pair Corralation between Dow Jones and KONTIGO CARE
Assuming the 90 days trading horizon Dow Jones is expected to generate 326.65 times less return on investment than KONTIGO CARE. But when comparing it to its historical volatility, Dow Jones Industrial is 16.17 times less risky than KONTIGO CARE. It trades about 0.0 of its potential returns per unit of risk. KONTIGO CARE AB is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 21.00 in KONTIGO CARE AB on September 13, 2024 and sell it today you would earn a total of 1.00 from holding KONTIGO CARE AB or generate 4.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Dow Jones Industrial vs. KONTIGO CARE AB
Performance |
| Timeline |
Dow Jones and KONTIGO CARE Volatility Contrast
Predicted Return Density |
| Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
KONTIGO CARE AB
Pair trading matchups for KONTIGO CARE
Pair Trading with Dow Jones and KONTIGO CARE
The main advantage of trading using opposite Dow Jones and KONTIGO CARE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones position performs unexpectedly, KONTIGO CARE 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 KONTIGO CARE will offset losses from the drop in KONTIGO CARE's long position.| Dow Jones vs. Hurco Companies | Dow Jones vs. Tyson Foods | Dow Jones vs. MYR Group | Dow Jones vs. Cannae Holdings |
| KONTIGO CARE vs. INTERCONT HOTELS | KONTIGO CARE vs. AECOM TECHNOLOGY | KONTIGO CARE vs. MACOM Technology Solutions | KONTIGO CARE vs. SCOTT TECHNOLOGY |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |