Correlation Between Dow Jones and Nordea Invest
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By analyzing existing cross correlation between Dow Jones Industrial and Nordea Invest Basis, you can compare the effects of market volatilities on Dow Jones and Nordea 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 Nordea Invest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and Nordea Invest.
Diversification Opportunities for Dow Jones and Nordea Invest
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Dow and Nordea is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial and Nordea Invest Basis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nordea Invest Basis 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 Nordea Invest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nordea Invest Basis has no effect on the direction of Dow Jones i.e., Dow Jones and Nordea Invest go up and down completely randomly.
Pair Corralation between Dow Jones and Nordea Invest
Assuming the 90 days trading horizon Dow Jones Industrial is expected to generate 1.54 times more return on investment than Nordea Invest. However, Dow Jones is 1.54 times more volatile than Nordea Invest Basis. It trades about 0.32 of its potential returns per unit of risk. Nordea Invest Basis is currently generating about 0.16 per unit of risk. If you would invest 4,257,373 in Dow Jones Industrial on October 29, 2024 and sell it today you would earn a total of 185,052 from holding Dow Jones Industrial or generate 4.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 94.74% |
| Values | Daily Returns |
Dow Jones Industrial vs. Nordea Invest Basis
Performance |
| Timeline |
Dow Jones and Nordea Invest Volatility Contrast
Predicted Return Density |
| Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
Nordea Invest Basis
Pair trading matchups for Nordea Invest
Pair Trading with Dow Jones and Nordea Invest
The main advantage of trading using opposite Dow Jones and Nordea Invest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones position performs unexpectedly, Nordea 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 Nordea Invest will offset losses from the drop in Nordea Invest's long position.| Dow Jones vs. Lion One Metals | Dow Jones vs. PennantPark Floating Rate | Dow Jones vs. TFI International | Dow Jones vs. United Guardian |
| Nordea Invest vs. Novo Nordisk AS | Nordea Invest vs. Nordea Bank Abp | Nordea Invest vs. DSV Panalpina AS | Nordea Invest vs. AP Mller |
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 CEOs Directory module to screen CEOs from public companies around the world.
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