Correlation Between Dow Jones and La Comer
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By analyzing existing cross correlation between Dow Jones Industrial and La Comer SAB, you can compare the effects of market volatilities on Dow Jones and La Comer 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 La Comer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and La Comer.
Diversification Opportunities for Dow Jones and La Comer
Very good diversification
The 3 months correlation between Dow and LACOMERUBC is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial and La Comer SAB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on La Comer SAB 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 La Comer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of La Comer SAB has no effect on the direction of Dow Jones i.e., Dow Jones and La Comer go up and down completely randomly.
Pair Corralation between Dow Jones and La Comer
Assuming the 90 days trading horizon Dow Jones Industrial is expected to generate 0.42 times more return on investment than La Comer. However, Dow Jones Industrial is 2.37 times less risky than La Comer. It trades about 0.17 of its potential returns per unit of risk. La Comer SAB is currently generating about -0.14 per unit of risk. If you would invest 4,234,224 in Dow Jones Industrial on October 20, 2024 and sell it today you would earn a total of 114,559 from holding Dow Jones Industrial or generate 2.71% 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. La Comer SAB
Performance |
| Timeline |
Dow Jones and La Comer Volatility Contrast
Predicted Return Density |
| Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
La Comer SAB
Pair trading matchups for La Comer
Pair Trading with Dow Jones and La Comer
The main advantage of trading using opposite Dow Jones and La Comer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones position performs unexpectedly, La Comer 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 La Comer will offset losses from the drop in La Comer's long position.| Dow Jones vs. SkyWest | Dow Jones vs. Air Transport Services | Dow Jones vs. LATAM Airlines Group | Dow Jones vs. Emerson Radio |
| La Comer vs. Grupo Comercial Chedraui | La Comer vs. Gentera SAB de | La Comer vs. El Puerto de | La Comer vs. Organizacin Soriana S |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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