Correlation Between Dow Jones and Argentex Group
Can any of the company-specific risk be diversified away by investing in both Dow Jones and Argentex Group 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 Argentex Group 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 Argentex Group PLC, you can compare the effects of market volatilities on Dow Jones and Argentex Group 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 Argentex Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and Argentex Group.
Diversification Opportunities for Dow Jones and Argentex Group
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Dow and Argentex is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial and Argentex Group PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Argentex Group PLC 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 Argentex Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Argentex Group PLC has no effect on the direction of Dow Jones i.e., Dow Jones and Argentex Group go up and down completely randomly.
Pair Corralation between Dow Jones and Argentex Group
Assuming the 90 days trading horizon Dow Jones Industrial is expected to generate 0.18 times more return on investment than Argentex Group. However, Dow Jones Industrial is 5.52 times less risky than Argentex Group. It trades about 0.15 of its potential returns per unit of risk. Argentex Group PLC is currently generating about -0.02 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 597,467 from holding Dow Jones Industrial or generate 15.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 97.66% |
| Values | Daily Returns |
Dow Jones Industrial vs. Argentex Group PLC
Performance |
| Timeline |
Dow Jones and Argentex Group Volatility Contrast
Predicted Return Density |
| Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
Argentex Group PLC
Pair trading matchups for Argentex Group
Pair Trading with Dow Jones and Argentex Group
The main advantage of trading using opposite Dow Jones and Argentex Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones position performs unexpectedly, Argentex Group 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 Argentex Group will offset losses from the drop in Argentex Group's long position.| Dow Jones vs. Eastern Co | Dow Jones vs. Uber Technologies | Dow Jones vs. AKITA Drilling | Dow Jones vs. Chemours Co |
| Argentex Group vs. Deltex Medical Group | Argentex Group vs. Creo Medical Group | Argentex Group vs. Gaztransport et Technigaz | Argentex Group vs. Atresmedia |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |