Correlation Between Dow Jones and Barbeque Nation
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By analyzing existing cross correlation between Dow Jones Industrial and Barbeque Nation Hospitality, you can compare the effects of market volatilities on Dow Jones and Barbeque Nation 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 Barbeque Nation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and Barbeque Nation.
Diversification Opportunities for Dow Jones and Barbeque Nation
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Dow and Barbeque is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial and Barbeque Nation Hospitality in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barbeque Nation Hosp 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 Barbeque Nation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Barbeque Nation Hosp has no effect on the direction of Dow Jones i.e., Dow Jones and Barbeque Nation go up and down completely randomly.
Pair Corralation between Dow Jones and Barbeque Nation
Assuming the 90 days trading horizon Dow Jones Industrial is expected to generate 0.54 times more return on investment than Barbeque Nation. However, Dow Jones Industrial is 1.85 times less risky than Barbeque Nation. It trades about -0.05 of its potential returns per unit of risk. Barbeque Nation Hospitality is currently generating about -0.57 per unit of risk. If you would invest 4,371,748 in Dow Jones Industrial on October 17, 2024 and sell it today you would lose (49,593) from holding Dow Jones Industrial or give up 1.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dow Jones Industrial vs. Barbeque Nation Hospitality
Performance |
| Timeline |
Dow Jones and Barbeque Nation Volatility Contrast
Predicted Return Density |
| Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
Barbeque Nation Hospitality
Pair trading matchups for Barbeque Nation
Pair Trading with Dow Jones and Barbeque Nation
The main advantage of trading using opposite Dow Jones and Barbeque Nation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones position performs unexpectedly, Barbeque Nation 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 Barbeque Nation will offset losses from the drop in Barbeque Nation's long position.| Dow Jones vs. JD Sports Fashion | Dow Jones vs. Titan Machinery | Dow Jones vs. Canlan Ice Sports | Dow Jones vs. Playa Hotels Resorts |
| Barbeque Nation vs. Aban Offshore Limited | Barbeque Nation vs. Future Retail Limited | Barbeque Nation vs. Welspun Investments and | Barbeque Nation vs. AUTHUM INVESTMENT INFRASTRUCTU |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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