Correlation Between Dow Jones and AdTheorent Holding
Can any of the company-specific risk be diversified away by investing in both Dow Jones and AdTheorent Holding 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 AdTheorent Holding 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 AdTheorent Holding, you can compare the effects of market volatilities on Dow Jones and AdTheorent Holding 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 AdTheorent Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and AdTheorent Holding.
Diversification Opportunities for Dow Jones and AdTheorent Holding
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Dow and AdTheorent is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial and AdTheorent Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AdTheorent Holding 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 AdTheorent Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AdTheorent Holding has no effect on the direction of Dow Jones i.e., Dow Jones and AdTheorent Holding go up and down completely randomly.
Pair Corralation between Dow Jones and AdTheorent Holding
If you would invest 4,273,213 in Dow Jones Industrial on November 4, 2024 and sell it today you would earn a total of 181,253 from holding Dow Jones Industrial or generate 4.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 5.0% |
| Values | Daily Returns |
Dow Jones Industrial vs. AdTheorent Holding
Performance |
| Timeline |
Dow Jones and AdTheorent Holding Volatility Contrast
Predicted Return Density |
| Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
AdTheorent Holding
Pair trading matchups for AdTheorent Holding
Pair Trading with Dow Jones and AdTheorent Holding
The main advantage of trading using opposite Dow Jones and AdTheorent Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones position performs unexpectedly, AdTheorent Holding 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 AdTheorent Holding will offset losses from the drop in AdTheorent Holding's long position.| Dow Jones vs. Rambler Metals and | Dow Jones vs. Nicola Mining | Dow Jones vs. Old Dominion Freight | Dow Jones vs. United Guardian |
| AdTheorent Holding vs. Funko Inc | AdTheorent Holding vs. BRP Inc | AdTheorent Holding vs. Enel Chile SA | AdTheorent Holding vs. Southwest Gas Holdings |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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