Correlation Between Dow Jones and Maslavi
Can any of the company-specific risk be diversified away by investing in both Dow Jones and Maslavi 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 Maslavi 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 Maslavi, you can compare the effects of market volatilities on Dow Jones and Maslavi 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 Maslavi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and Maslavi.
Diversification Opportunities for Dow Jones and Maslavi
Very weak diversification
The 3 months correlation between Dow and Maslavi is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial and Maslavi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maslavi 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 Maslavi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maslavi has no effect on the direction of Dow Jones i.e., Dow Jones and Maslavi go up and down completely randomly.
Pair Corralation between Dow Jones and Maslavi
Assuming the 90 days trading horizon Dow Jones Industrial is expected to generate 0.39 times more return on investment than Maslavi. However, Dow Jones Industrial is 2.59 times less risky than Maslavi. It trades about 0.2 of its potential returns per unit of risk. Maslavi is currently generating about 0.05 per unit of risk. If you would invest 4,093,693 in Dow Jones Industrial on September 2, 2024 and sell it today you would earn a total of 397,372 from holding Dow Jones Industrial or generate 9.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 73.44% |
| Values | Daily Returns |
Dow Jones Industrial vs. Maslavi
Performance |
| Timeline |
Dow Jones and Maslavi Volatility Contrast
Predicted Return Density |
| Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
Maslavi
Pair trading matchups for Maslavi
Pair Trading with Dow Jones and Maslavi
The main advantage of trading using opposite Dow Jones and Maslavi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones position performs unexpectedly, Maslavi 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 Maslavi will offset losses from the drop in Maslavi's 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 |
| Maslavi vs. Levinstein Prop | Maslavi vs. Sarfati | Maslavi vs. Kardan Real Estate | Maslavi vs. Netanel Group |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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