Correlation Between Dow Jones and Can Fite
Can any of the company-specific risk be diversified away by investing in both Dow Jones and Can Fite 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 Can Fite 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 Can Fite Biopharma, you can compare the effects of market volatilities on Dow Jones and Can Fite 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 Can Fite. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and Can Fite.
Diversification Opportunities for Dow Jones and Can Fite
Good diversification
The 3 months correlation between Dow and Can is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial and Can Fite Biopharma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Can Fite Biopharma 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 Can Fite. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Can Fite Biopharma has no effect on the direction of Dow Jones i.e., Dow Jones and Can Fite go up and down completely randomly.
Pair Corralation between Dow Jones and Can Fite
Assuming the 90 days trading horizon Dow Jones Industrial is expected to generate 0.13 times more return on investment than Can Fite. However, Dow Jones Industrial is 7.45 times less risky than Can Fite. It trades about 0.16 of its potential returns per unit of risk. Can Fite Biopharma is currently generating about 0.02 per unit of risk. If you would invest 3,857,103 in Dow Jones Industrial on September 1, 2024 and sell it today you would earn a total of 633,962 from holding Dow Jones Industrial or generate 16.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dow Jones Industrial vs. Can Fite Biopharma
Performance |
| Timeline |
Dow Jones and Can Fite Volatility Contrast
Predicted Return Density |
| Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
Can Fite Biopharma
Pair trading matchups for Can Fite
Pair Trading with Dow Jones and Can Fite
The main advantage of trading using opposite Dow Jones and Can Fite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones position performs unexpectedly, Can Fite 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 Can Fite will offset losses from the drop in Can Fite's long position.| Dow Jones vs. Catalyst Pharmaceuticals | Dow Jones vs. Sphere Entertainment Co | Dow Jones vs. National CineMedia | Dow Jones vs. Mink Therapeutics |
| Can Fite vs. ImmuCell | Can Fite vs. Compugen | Can Fite vs. Evogene | Can Fite vs. Collplant Biotechnologies |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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