Correlation Between Dow Jones and Oxford Nanopore
Can any of the company-specific risk be diversified away by investing in both Dow Jones and Oxford Nanopore 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 Oxford Nanopore 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 Oxford Nanopore Technologies, you can compare the effects of market volatilities on Dow Jones and Oxford Nanopore 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 Oxford Nanopore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and Oxford Nanopore.
Diversification Opportunities for Dow Jones and Oxford Nanopore
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Dow and Oxford is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial and Oxford Nanopore Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oxford Nanopore Tech 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 Oxford Nanopore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oxford Nanopore Tech has no effect on the direction of Dow Jones i.e., Dow Jones and Oxford Nanopore go up and down completely randomly.
Pair Corralation between Dow Jones and Oxford Nanopore
Assuming the 90 days trading horizon Dow Jones is expected to generate 1.93 times less return on investment than Oxford Nanopore. But when comparing it to its historical volatility, Dow Jones Industrial is 7.31 times less risky than Oxford Nanopore. It trades about 0.37 of its potential returns per unit of risk. Oxford Nanopore Technologies is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 189.00 in Oxford Nanopore Technologies on September 1, 2024 and sell it today you would earn a total of 19.00 from holding Oxford Nanopore Technologies or generate 10.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dow Jones Industrial vs. Oxford Nanopore Technologies
Performance |
| Timeline |
Dow Jones and Oxford Nanopore Volatility Contrast
Predicted Return Density |
| Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
Oxford Nanopore Technologies
Pair trading matchups for Oxford Nanopore
Pair Trading with Dow Jones and Oxford Nanopore
The main advantage of trading using opposite Dow Jones and Oxford Nanopore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones position performs unexpectedly, Oxford Nanopore 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 Oxford Nanopore will offset losses from the drop in Oxford Nanopore's long position.| Dow Jones vs. Catalyst Pharmaceuticals | Dow Jones vs. Sphere Entertainment Co | Dow Jones vs. National CineMedia | Dow Jones vs. Mink Therapeutics |
| Oxford Nanopore vs. Lineage Cell Therapeutics | Oxford Nanopore vs. Cadrenal Therapeutics, Common | Oxford Nanopore vs. ImmuCell | Oxford Nanopore vs. Braxia Scientific Corp |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |