Correlation Between Dow Jones and Keeson Technology
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By analyzing existing cross correlation between Dow Jones Industrial and Keeson Technology Corp, you can compare the effects of market volatilities on Dow Jones and Keeson Technology 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 Keeson Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and Keeson Technology.
Diversification Opportunities for Dow Jones and Keeson Technology
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Dow and Keeson is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial and Keeson Technology Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Keeson Technology Corp 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 Keeson Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Keeson Technology Corp has no effect on the direction of Dow Jones i.e., Dow Jones and Keeson Technology go up and down completely randomly.
Pair Corralation between Dow Jones and Keeson Technology
Assuming the 90 days trading horizon Dow Jones Industrial is expected to generate 0.28 times more return on investment than Keeson Technology. However, Dow Jones Industrial is 3.63 times less risky than Keeson Technology. It trades about 0.16 of its potential returns per unit of risk. Keeson Technology Corp is currently generating about -0.03 per unit of risk. If you would invest 3,880,733 in Dow Jones Industrial on September 3, 2024 and sell it today you would earn a total of 610,332 from holding Dow Jones Industrial or generate 15.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 96.8% |
| Values | Daily Returns |
Dow Jones Industrial vs. Keeson Technology Corp
Performance |
| Timeline |
Dow Jones and Keeson Technology Volatility Contrast
Predicted Return Density |
| Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
Keeson Technology Corp
Pair trading matchups for Keeson Technology
Pair Trading with Dow Jones and Keeson Technology
The main advantage of trading using opposite Dow Jones and Keeson Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones position performs unexpectedly, Keeson Technology 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 Keeson Technology will offset losses from the drop in Keeson Technology's long position.| Dow Jones vs. Eastern Co | Dow Jones vs. Uber Technologies | Dow Jones vs. AKITA Drilling | Dow Jones vs. Chemours Co |
| Keeson Technology vs. Jiangxi Naipu Mining | Keeson Technology vs. Western Mining Co | Keeson Technology vs. Guangdong Jingyi Metal | Keeson Technology vs. Chengtun Mining 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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