Correlation Between Dow Jones and CENTUM INVESTMENT
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By analyzing existing cross correlation between Dow Jones Industrial and CENTUM INVESTMENT PANY, you can compare the effects of market volatilities on Dow Jones and CENTUM INVESTMENT 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 CENTUM INVESTMENT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and CENTUM INVESTMENT.
Diversification Opportunities for Dow Jones and CENTUM INVESTMENT
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Dow and CENTUM is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial and CENTUM INVESTMENT PANY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CENTUM INVESTMENT PANY 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 CENTUM INVESTMENT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CENTUM INVESTMENT PANY has no effect on the direction of Dow Jones i.e., Dow Jones and CENTUM INVESTMENT go up and down completely randomly.
Pair Corralation between Dow Jones and CENTUM INVESTMENT
Assuming the 90 days trading horizon Dow Jones is expected to generate 13.95 times less return on investment than CENTUM INVESTMENT. But when comparing it to its historical volatility, Dow Jones Industrial is 4.47 times less risky than CENTUM INVESTMENT. It trades about 0.1 of its potential returns per unit of risk. CENTUM INVESTMENT PANY is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest 982.00 in CENTUM INVESTMENT PANY on October 23, 2024 and sell it today you would earn a total of 198.00 from holding CENTUM INVESTMENT PANY or generate 20.16% 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. CENTUM INVESTMENT PANY
Performance |
| Timeline |
Dow Jones and CENTUM INVESTMENT Volatility Contrast
Predicted Return Density |
| Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
CENTUM INVESTMENT PANY
Pair trading matchups for CENTUM INVESTMENT
Pair Trading with Dow Jones and CENTUM INVESTMENT
The main advantage of trading using opposite Dow Jones and CENTUM INVESTMENT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones position performs unexpectedly, CENTUM INVESTMENT 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 CENTUM INVESTMENT will offset losses from the drop in CENTUM INVESTMENT's long position.| Dow Jones vs. Grupo Televisa SAB | Dow Jones vs. NiSource | Dow Jones vs. Kinetik Holdings | Dow Jones vs. Empresa Distribuidora y |
| CENTUM INVESTMENT vs. HOME AFRIKA LTD | CENTUM INVESTMENT vs. HOMEBOYZ ENTERTAINMENT PLC | CENTUM INVESTMENT vs. UCHUMI SUPERMARKET PLC | CENTUM INVESTMENT vs. STANDARD CHARTERED BANK |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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