Correlation Between Dow Jones and BankInvest Emerging
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By analyzing existing cross correlation between Dow Jones Industrial and BankInvest Emerging, you can compare the effects of market volatilities on Dow Jones and BankInvest Emerging 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 BankInvest Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and BankInvest Emerging.
Diversification Opportunities for Dow Jones and BankInvest Emerging
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Dow and BankInvest is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial and BankInvest Emerging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BankInvest Emerging 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 BankInvest Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BankInvest Emerging has no effect on the direction of Dow Jones i.e., Dow Jones and BankInvest Emerging go up and down completely randomly.
Pair Corralation between Dow Jones and BankInvest Emerging
Assuming the 90 days trading horizon Dow Jones is expected to generate 1.76 times less return on investment than BankInvest Emerging. In addition to that, Dow Jones is 1.0 times more volatile than BankInvest Emerging. It trades about 0.05 of its total potential returns per unit of risk. BankInvest Emerging is currently generating about 0.09 per unit of volatility. If you would invest 10,255 in BankInvest Emerging on September 13, 2024 and sell it today you would earn a total of 105.00 from holding BankInvest Emerging or generate 1.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Dow Jones Industrial vs. BankInvest Emerging
Performance |
| Timeline |
Dow Jones and BankInvest Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
BankInvest Emerging
Pair trading matchups for BankInvest Emerging
Pair Trading with Dow Jones and BankInvest Emerging
The main advantage of trading using opposite Dow Jones and BankInvest Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones position performs unexpectedly, BankInvest Emerging 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 BankInvest Emerging will offset losses from the drop in BankInvest Emerging's long position.| Dow Jones vs. ChampionX | Dow Jones vs. Highway Holdings Limited | Dow Jones vs. Westinghouse Air Brake | Dow Jones vs. Cementos Pacasmayo SAA |
| BankInvest Emerging vs. BankInvest Emerging | BankInvest Emerging vs. BankInvest Lange Danske | BankInvest Emerging vs. BankInvest Hjt | BankInvest Emerging vs. BankInvest Danske |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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