Correlation Between Dow Jones and Intrusion
Can any of the company-specific risk be diversified away by investing in both Dow Jones and Intrusion 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 Intrusion 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 Intrusion, you can compare the effects of market volatilities on Dow Jones and Intrusion 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 Intrusion. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and Intrusion.
Diversification Opportunities for Dow Jones and Intrusion
Pay attention - limited upside
The 3 months correlation between Dow and Intrusion is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial and Intrusion in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intrusion 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 Intrusion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intrusion has no effect on the direction of Dow Jones i.e., Dow Jones and Intrusion go up and down completely randomly.
Pair Corralation between Dow Jones and Intrusion
Assuming the 90 days trading horizon Dow Jones Industrial is expected to generate 0.18 times more return on investment than Intrusion. However, Dow Jones Industrial is 5.45 times less risky than Intrusion. It trades about 0.27 of its potential returns per unit of risk. Intrusion is currently generating about -0.24 per unit of risk. If you would invest 4,238,757 in Dow Jones Industrial on August 29, 2024 and sell it today you would earn a total of 247,274 from holding Dow Jones Industrial or generate 5.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dow Jones Industrial vs. Intrusion
Performance |
| Timeline |
Dow Jones and Intrusion Volatility Contrast
Predicted Return Density |
| Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
Intrusion
Pair trading matchups for Intrusion
Pair Trading with Dow Jones and Intrusion
The main advantage of trading using opposite Dow Jones and Intrusion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones position performs unexpectedly, Intrusion 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 Intrusion will offset losses from the drop in Intrusion's long position.| Dow Jones vs. CECO Environmental Corp | Dow Jones vs. Western Acquisition Ventures | Dow Jones vs. Tyson Foods | Dow Jones vs. Inflection Point Acquisition |
| Intrusion vs. Cerberus Cyber Sentinel | Intrusion vs. authID Inc | Intrusion vs. Hub Cyber Security | Intrusion vs. Payoneer Global |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |