Correlation Between Dow Jones and Attendo AB
Can any of the company-specific risk be diversified away by investing in both Dow Jones and Attendo AB 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 Attendo AB 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 Attendo AB, you can compare the effects of market volatilities on Dow Jones and Attendo AB 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 Attendo AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and Attendo AB.
Diversification Opportunities for Dow Jones and Attendo AB
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Dow and Attendo is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial and Attendo AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Attendo AB 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 Attendo AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Attendo AB has no effect on the direction of Dow Jones i.e., Dow Jones and Attendo AB go up and down completely randomly.
Pair Corralation between Dow Jones and Attendo AB
Assuming the 90 days trading horizon Dow Jones Industrial is expected to generate 1.03 times more return on investment than Attendo AB. However, Dow Jones is 1.03 times more volatile than Attendo AB. It trades about 0.27 of its potential returns per unit of risk. Attendo AB is currently generating about 0.07 per unit of risk. If you would invest 4,238,757 in Dow Jones Industrial on August 29, 2024 and sell it today you would earn a total of 247,274 from holding Dow Jones Industrial or generate 5.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dow Jones Industrial vs. Attendo AB
Performance |
| Timeline |
Dow Jones and Attendo AB Volatility Contrast
Predicted Return Density |
| Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
Attendo AB
Pair trading matchups for Attendo AB
Pair Trading with Dow Jones and Attendo AB
The main advantage of trading using opposite Dow Jones and Attendo AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones position performs unexpectedly, Attendo AB 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 Attendo AB will offset losses from the drop in Attendo AB's long position.| Dow Jones vs. CECO Environmental Corp | Dow Jones vs. Western Acquisition Ventures | Dow Jones vs. Tyson Foods | Dow Jones vs. Inflection Point Acquisition |
| Attendo AB vs. Humana AB | Attendo AB vs. Ambea AB | Attendo AB vs. Dometic Group AB | Attendo AB vs. Bonava AB |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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