Correlation Between Dow Jones and Oxus Acquisition
Can any of the company-specific risk be diversified away by investing in both Dow Jones and Oxus Acquisition 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 Oxus Acquisition 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 Oxus Acquisition Corp, you can compare the effects of market volatilities on Dow Jones and Oxus Acquisition 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 Oxus Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and Oxus Acquisition.
Diversification Opportunities for Dow Jones and Oxus Acquisition
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Dow and Oxus is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial and Oxus Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oxus Acquisition Corp 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 Oxus Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oxus Acquisition Corp has no effect on the direction of Dow Jones i.e., Dow Jones and Oxus Acquisition go up and down completely randomly.
Pair Corralation between Dow Jones and Oxus Acquisition
If you would invest 3,515,104 in Dow Jones Industrial on September 14, 2024 and sell it today you would earn a total of 876,308 from holding Dow Jones Industrial or generate 24.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 0.37% |
| Values | Daily Returns |
Dow Jones Industrial vs. Oxus Acquisition Corp
Performance |
| Timeline |
Dow Jones and Oxus Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Dow Jones and Oxus Acquisition
The main advantage of trading using opposite Dow Jones and Oxus Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones position performs unexpectedly, Oxus Acquisition 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 Oxus Acquisition will offset losses from the drop in Oxus Acquisition's long position.| Dow Jones vs. Hurco Companies | Dow Jones vs. Tyson Foods | Dow Jones vs. MYR Group | Dow Jones vs. Cannae Holdings |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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