Correlation Between Dow Jones and OneAscent Core
Can any of the company-specific risk be diversified away by investing in both Dow Jones and OneAscent Core 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 OneAscent Core 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 OneAscent Core Plus, you can compare the effects of market volatilities on Dow Jones and OneAscent Core 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 OneAscent Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and OneAscent Core.
Diversification Opportunities for Dow Jones and OneAscent Core
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Dow and OneAscent is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial and OneAscent Core Plus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OneAscent Core Plus 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 OneAscent Core. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OneAscent Core Plus has no effect on the direction of Dow Jones i.e., Dow Jones and OneAscent Core go up and down completely randomly.
Pair Corralation between Dow Jones and OneAscent Core
Assuming the 90 days trading horizon Dow Jones Industrial is expected to generate 3.08 times more return on investment than OneAscent Core. However, Dow Jones is 3.08 times more volatile than OneAscent Core Plus. It trades about 0.36 of its potential returns per unit of risk. OneAscent Core Plus is currently generating about 0.18 per unit of risk. If you would invest 4,179,460 in Dow Jones Industrial on September 4, 2024 and sell it today you would earn a total of 298,740 from holding Dow Jones Industrial or generate 7.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dow Jones Industrial vs. OneAscent Core Plus
Performance |
| Timeline |
Dow Jones and OneAscent Core Volatility Contrast
Predicted Return Density |
| Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
OneAscent Core Plus
Pair trading matchups for OneAscent Core
Pair Trading with Dow Jones and OneAscent Core
The main advantage of trading using opposite Dow Jones and OneAscent Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones position performs unexpectedly, OneAscent Core 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 OneAscent Core will offset losses from the drop in OneAscent Core's long position.| Dow Jones vs. Gentex | Dow Jones vs. American Axle Manufacturing | Dow Jones vs. Pearson PLC ADR | Dow Jones vs. Marine Products |
| OneAscent Core vs. iShares Core 1 5 | OneAscent Core vs. iShares Core International | OneAscent Core vs. iShares Treasury Bond | OneAscent Core vs. iShares 1 5 Year |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |