Correlation Between Dow Jones and Koninklijke Ahold
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By analyzing existing cross correlation between Dow Jones Industrial and Koninklijke Ahold Delhaize, you can compare the effects of market volatilities on Dow Jones and Koninklijke Ahold 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 Koninklijke Ahold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and Koninklijke Ahold.
Diversification Opportunities for Dow Jones and Koninklijke Ahold
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Dow and Koninklijke is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial and Koninklijke Ahold Delhaize in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Koninklijke Ahold 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 Koninklijke Ahold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Koninklijke Ahold has no effect on the direction of Dow Jones i.e., Dow Jones and Koninklijke Ahold go up and down completely randomly.
Pair Corralation between Dow Jones and Koninklijke Ahold
Assuming the 90 days trading horizon Dow Jones Industrial is expected to generate 0.91 times more return on investment than Koninklijke Ahold. However, Dow Jones Industrial is 1.1 times less risky than Koninklijke Ahold. It trades about 0.37 of its potential returns per unit of risk. Koninklijke Ahold Delhaize is currently generating about 0.31 per unit of risk. If you would invest 4,176,346 in Dow Jones Industrial on September 1, 2024 and sell it today you would earn a total of 314,719 from holding Dow Jones Industrial or generate 7.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 91.3% |
| Values | Daily Returns |
Dow Jones Industrial vs. Koninklijke Ahold Delhaize
Performance |
| Timeline |
Dow Jones and Koninklijke Ahold Volatility Contrast
Predicted Return Density |
| Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
Koninklijke Ahold Delhaize
Pair trading matchups for Koninklijke Ahold
Pair Trading with Dow Jones and Koninklijke Ahold
The main advantage of trading using opposite Dow Jones and Koninklijke Ahold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones position performs unexpectedly, Koninklijke Ahold 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 Koninklijke Ahold will offset losses from the drop in Koninklijke Ahold's long position.| Dow Jones vs. Catalyst Pharmaceuticals | Dow Jones vs. Sphere Entertainment Co | Dow Jones vs. National CineMedia | Dow Jones vs. Mink Therapeutics |
| Koninklijke Ahold vs. GREENX METALS LTD | Koninklijke Ahold vs. AIR PRODCHEMICALS | Koninklijke Ahold vs. BLUESCOPE STEEL | Koninklijke Ahold vs. Lion One Metals |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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