Correlation Between Dow Jones and Akkhie Prakarn
Can any of the company-specific risk be diversified away by investing in both Dow Jones and Akkhie Prakarn 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 Akkhie Prakarn 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 Akkhie Prakarn Public, you can compare the effects of market volatilities on Dow Jones and Akkhie Prakarn 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 Akkhie Prakarn. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and Akkhie Prakarn.
Diversification Opportunities for Dow Jones and Akkhie Prakarn
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Dow and Akkhie is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial and Akkhie Prakarn Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akkhie Prakarn Public 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 Akkhie Prakarn. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Akkhie Prakarn Public has no effect on the direction of Dow Jones i.e., Dow Jones and Akkhie Prakarn go up and down completely randomly.
Pair Corralation between Dow Jones and Akkhie Prakarn
Assuming the 90 days trading horizon Dow Jones Industrial is expected to generate 0.29 times more return on investment than Akkhie Prakarn. However, Dow Jones Industrial is 3.41 times less risky than Akkhie Prakarn. It trades about 0.37 of its potential returns per unit of risk. Akkhie Prakarn Public is currently generating about -0.36 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 Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Dow Jones Industrial vs. Akkhie Prakarn Public
Performance |
| Timeline |
Dow Jones and Akkhie Prakarn Volatility Contrast
Predicted Return Density |
| Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
Akkhie Prakarn Public
Pair trading matchups for Akkhie Prakarn
Pair Trading with Dow Jones and Akkhie Prakarn
The main advantage of trading using opposite Dow Jones and Akkhie Prakarn positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones position performs unexpectedly, Akkhie Prakarn 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 Akkhie Prakarn will offset losses from the drop in Akkhie Prakarn's long position.| Dow Jones vs. Catalyst Pharmaceuticals | Dow Jones vs. Sphere Entertainment Co | Dow Jones vs. National CineMedia | Dow Jones vs. Mink Therapeutics |
| Akkhie Prakarn vs. AIRA Factoring Public | Akkhie Prakarn vs. Cho Thavee Public | Akkhie Prakarn vs. G Capital Public | Akkhie Prakarn vs. ARIP Public |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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