Correlation Between Dow Jones and Cellink AB
Can any of the company-specific risk be diversified away by investing in both Dow Jones and Cellink AB 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 Cellink AB 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 Cellink AB, you can compare the effects of market volatilities on Dow Jones and Cellink AB 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 Cellink AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and Cellink AB.
Diversification Opportunities for Dow Jones and Cellink AB
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Dow and Cellink is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial and Cellink AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cellink 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 Cellink AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cellink AB has no effect on the direction of Dow Jones i.e., Dow Jones and Cellink AB go up and down completely randomly.
Pair Corralation between Dow Jones and Cellink AB
Assuming the 90 days trading horizon Dow Jones is expected to generate 1.02 times less return on investment than Cellink AB. But when comparing it to its historical volatility, Dow Jones Industrial is 4.85 times less risky than Cellink AB. It trades about 0.26 of its potential returns per unit of risk. Cellink AB is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 348.00 in Cellink AB on August 28, 2024 and sell it today you would earn a total of 12.00 from holding Cellink AB or generate 3.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dow Jones Industrial vs. Cellink AB
Performance |
| Timeline |
Dow Jones and Cellink AB Volatility Contrast
Predicted Return Density |
| Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
Cellink AB
Pair trading matchups for Cellink AB
Pair Trading with Dow Jones and Cellink AB
The main advantage of trading using opposite Dow Jones and Cellink AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones position performs unexpectedly, Cellink AB 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 Cellink AB will offset losses from the drop in Cellink AB'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 |
| Cellink AB vs. Superior Plus Corp | Cellink AB vs. NMI Holdings | Cellink AB vs. Origin Agritech | Cellink AB vs. SIVERS SEMICONDUCTORS AB |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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