Correlation Between Dow Jones and Maj Invest
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By analyzing existing cross correlation between Dow Jones Industrial and Maj Invest Glob, you can compare the effects of market volatilities on Dow Jones and Maj Invest 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 Maj Invest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and Maj Invest.
Diversification Opportunities for Dow Jones and Maj Invest
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Dow and Maj is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial and Maj Invest Glob in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maj Invest Glob 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 Maj Invest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maj Invest Glob has no effect on the direction of Dow Jones i.e., Dow Jones and Maj Invest go up and down completely randomly.
Pair Corralation between Dow Jones and Maj Invest
Assuming the 90 days trading horizon Dow Jones Industrial is expected to generate 0.96 times more return on investment than Maj Invest. However, Dow Jones Industrial is 1.04 times less risky than Maj Invest. It trades about 0.17 of its potential returns per unit of risk. Maj Invest Glob is currently generating about 0.09 per unit of risk. If you would invest 4,133,505 in Dow Jones Industrial on August 29, 2024 and sell it today you would earn a total of 352,526 from holding Dow Jones Industrial or generate 8.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 98.46% |
| Values | Daily Returns |
Dow Jones Industrial vs. Maj Invest Glob
Performance |
| Timeline |
Dow Jones and Maj Invest Volatility Contrast
Predicted Return Density |
| Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
Maj Invest Glob
Pair trading matchups for Maj Invest
Pair Trading with Dow Jones and Maj Invest
The main advantage of trading using opposite Dow Jones and Maj Invest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones position performs unexpectedly, Maj Invest 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 Maj Invest will offset losses from the drop in Maj Invest's long position.| Dow Jones vs. Kaltura | Dow Jones vs. Artisan Partners Asset | Dow Jones vs. US Global Investors | Dow Jones vs. Analog Devices |
| Maj Invest vs. Jyske Bank AS | Maj Invest vs. Strategic Investments AS | Maj Invest vs. PARKEN Sport Entertainment | Maj Invest vs. BankIn Bredygt Klimaakt |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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