Correlation Between Dow Jones and Immunovia Publ
Can any of the company-specific risk be diversified away by investing in both Dow Jones and Immunovia Publ 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 Immunovia Publ 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 Immunovia publ AB, you can compare the effects of market volatilities on Dow Jones and Immunovia Publ 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 Immunovia Publ. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and Immunovia Publ.
Diversification Opportunities for Dow Jones and Immunovia Publ
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Dow and Immunovia is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial and Immunovia publ AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Immunovia publ 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 Immunovia Publ. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Immunovia publ AB has no effect on the direction of Dow Jones i.e., Dow Jones and Immunovia Publ go up and down completely randomly.
Pair Corralation between Dow Jones and Immunovia Publ
Assuming the 90 days trading horizon Dow Jones is expected to generate 5.14 times less return on investment than Immunovia Publ. But when comparing it to its historical volatility, Dow Jones Industrial is 7.38 times less risky than Immunovia Publ. It trades about 0.37 of its potential returns per unit of risk. Immunovia publ AB is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 59.00 in Immunovia publ AB on September 1, 2024 and sell it today you would earn a total of 26.00 from holding Immunovia publ AB or generate 44.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 91.3% |
| Values | Daily Returns |
Dow Jones Industrial vs. Immunovia publ AB
Performance |
| Timeline |
Dow Jones and Immunovia Publ Volatility Contrast
Predicted Return Density |
| Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
Immunovia publ AB
Pair trading matchups for Immunovia Publ
Pair Trading with Dow Jones and Immunovia Publ
The main advantage of trading using opposite Dow Jones and Immunovia Publ positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones position performs unexpectedly, Immunovia Publ 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 Immunovia Publ will offset losses from the drop in Immunovia Publ's long position.| Dow Jones vs. Catalyst Pharmaceuticals | Dow Jones vs. Sphere Entertainment Co | Dow Jones vs. National CineMedia | Dow Jones vs. Mink Therapeutics |
| Immunovia Publ vs. ADDvise Group B | Immunovia Publ vs. Hanza AB | Immunovia Publ vs. Awardit AB | Immunovia Publ vs. Doxa 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |