Correlation Between Dow Jones and Afi Properties
Can any of the company-specific risk be diversified away by investing in both Dow Jones and Afi Properties 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 Afi Properties 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 Afi Properties, you can compare the effects of market volatilities on Dow Jones and Afi Properties 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 Afi Properties. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and Afi Properties.
Diversification Opportunities for Dow Jones and Afi Properties
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Dow and Afi is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial and Afi Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Afi Properties 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 Afi Properties. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Afi Properties has no effect on the direction of Dow Jones i.e., Dow Jones and Afi Properties go up and down completely randomly.
Pair Corralation between Dow Jones and Afi Properties
Assuming the 90 days trading horizon Dow Jones Industrial is expected to generate 0.67 times more return on investment than Afi Properties. However, Dow Jones Industrial is 1.49 times less risky than Afi Properties. It trades about 0.27 of its potential returns per unit of risk. Afi Properties is currently generating about -0.05 per unit of risk. If you would invest 4,223,305 in Dow Jones Industrial on August 30, 2024 and sell it today you would earn a total of 248,901 from holding Dow Jones Industrial or generate 5.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 82.61% |
| Values | Daily Returns |
Dow Jones Industrial vs. Afi Properties
Performance |
| Timeline |
Dow Jones and Afi Properties Volatility Contrast
Predicted Return Density |
| Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
Afi Properties
Pair trading matchups for Afi Properties
Pair Trading with Dow Jones and Afi Properties
The main advantage of trading using opposite Dow Jones and Afi Properties positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones position performs unexpectedly, Afi Properties 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 Afi Properties will offset losses from the drop in Afi Properties' long position.| Dow Jones vs. Skillful Craftsman Education | Dow Jones vs. Acco Brands | Dow Jones vs. Cracker Barrel Old | Dow Jones vs. Coursera |
| Afi Properties vs. Alony Hetz Properties | Afi Properties vs. Clal Insurance Enterprises | Afi Properties vs. Electra | Afi Properties vs. Harel Insurance Investments |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |