Correlation Between Dow Jones and M2M GROUP
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By analyzing existing cross correlation between Dow Jones Industrial and M2M GROUP, you can compare the effects of market volatilities on Dow Jones and M2M GROUP 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 M2M GROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and M2M GROUP.
Diversification Opportunities for Dow Jones and M2M GROUP
Weak diversification
The 3 months correlation between Dow and M2M is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial and M2M GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on M2M GROUP 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 M2M GROUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of M2M GROUP has no effect on the direction of Dow Jones i.e., Dow Jones and M2M GROUP go up and down completely randomly.
Pair Corralation between Dow Jones and M2M GROUP
Assuming the 90 days trading horizon Dow Jones Industrial is expected to generate 0.34 times more return on investment than M2M GROUP. However, Dow Jones Industrial is 2.97 times less risky than M2M GROUP. It trades about 0.08 of its potential returns per unit of risk. M2M GROUP is currently generating about -0.03 per unit of risk. If you would invest 3,424,593 in Dow Jones Industrial on November 2, 2024 and sell it today you would earn a total of 1,063,620 from holding Dow Jones Industrial or generate 31.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 79.8% |
| Values | Daily Returns |
Dow Jones Industrial vs. M2M GROUP
Performance |
| Timeline |
Dow Jones and M2M GROUP Volatility Contrast
Predicted Return Density |
| Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
M2M GROUP
Pair trading matchups for M2M GROUP
Pair Trading with Dow Jones and M2M GROUP
The main advantage of trading using opposite Dow Jones and M2M GROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones position performs unexpectedly, M2M GROUP 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 M2M GROUP will offset losses from the drop in M2M GROUP's long position.| Dow Jones vs. Cincinnati Financial | Dow Jones vs. Kellanova | Dow Jones vs. Acme United | Dow Jones vs. Procter Gamble |
| M2M GROUP vs. CREDIT IMMOBILIER ET | M2M GROUP vs. CFG BANK | M2M GROUP vs. MICRODATA | M2M GROUP vs. ATTIJARIWAFA BANK |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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