Correlation Between Dow Jones and Jaguar Global
Can any of the company-specific risk be diversified away by investing in both Dow Jones and Jaguar Global 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 Jaguar Global 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 Jaguar Global Growth, you can compare the effects of market volatilities on Dow Jones and Jaguar Global 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 Jaguar Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and Jaguar Global.
Diversification Opportunities for Dow Jones and Jaguar Global
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Dow and Jaguar is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial and Jaguar Global Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jaguar Global Growth 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 Jaguar Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jaguar Global Growth has no effect on the direction of Dow Jones i.e., Dow Jones and Jaguar Global go up and down completely randomly.
Pair Corralation between Dow Jones and Jaguar Global
If you would invest 4,176,346 in Dow Jones Industrial on September 1, 2024 and sell it today you would earn a total of 314,719 from holding Dow Jones Industrial or generate 7.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Dow Jones Industrial vs. Jaguar Global Growth
Performance |
| Timeline |
Dow Jones and Jaguar Global Volatility Contrast
Predicted Return Density |
| Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
Jaguar Global Growth
Pair trading matchups for Jaguar Global
Pair Trading with Dow Jones and Jaguar Global
The main advantage of trading using opposite Dow Jones and Jaguar Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones position performs unexpectedly, Jaguar Global 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 Jaguar Global will offset losses from the drop in Jaguar Global's long position.| Dow Jones vs. Catalyst Pharmaceuticals | Dow Jones vs. Sphere Entertainment Co | Dow Jones vs. National CineMedia | Dow Jones vs. Mink Therapeutics |
| Jaguar Global vs. Hennessy Capital Investment | Jaguar Global vs. AlphaTime Acquisition Corp | Jaguar Global vs. Manaris Corp |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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