Correlation Between Dow Jones and Kaya Holdings
Can any of the company-specific risk be diversified away by investing in both Dow Jones and Kaya Holdings 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 Kaya Holdings 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 Kaya Holdings, you can compare the effects of market volatilities on Dow Jones and Kaya Holdings 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 Kaya Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and Kaya Holdings.
Diversification Opportunities for Dow Jones and Kaya Holdings
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Dow and Kaya is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial and Kaya Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kaya Holdings 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 Kaya Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kaya Holdings has no effect on the direction of Dow Jones i.e., Dow Jones and Kaya Holdings go up and down completely randomly.
Pair Corralation between Dow Jones and Kaya Holdings
Assuming the 90 days trading horizon Dow Jones is expected to generate 2.39 times less return on investment than Kaya Holdings. But when comparing it to its historical volatility, Dow Jones Industrial is 9.87 times less risky than Kaya Holdings. It trades about 0.34 of its potential returns per unit of risk. Kaya Holdings is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 3.53 in Kaya Holdings on September 2, 2024 and sell it today you would earn a total of 0.27 from holding Kaya Holdings or generate 7.65% 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. Kaya Holdings
Performance |
| Timeline |
Dow Jones and Kaya Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
Kaya Holdings
Pair trading matchups for Kaya Holdings
Pair Trading with Dow Jones and Kaya Holdings
The main advantage of trading using opposite Dow Jones and Kaya Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones position performs unexpectedly, Kaya Holdings 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 Kaya Holdings will offset losses from the drop in Kaya Holdings' long position.| Dow Jones vs. Dream Finders Homes | Dow Jones vs. GEN Restaurant Group, | Dow Jones vs. National Beverage Corp | Dow Jones vs. BJs Restaurants |
| Kaya Holdings vs. MPX International Corp | Kaya Holdings vs. Grown Rogue International | Kaya Holdings vs. Slang Worldwide | Kaya Holdings vs. Decibel Cannabis |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| CEOs Directory Screen CEOs from public companies around the world |