Correlation Between Dow Jones and Pegasus Hava
Can any of the company-specific risk be diversified away by investing in both Dow Jones and Pegasus Hava 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 Pegasus Hava 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 Pegasus Hava Tasimaciligi, you can compare the effects of market volatilities on Dow Jones and Pegasus Hava 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 Pegasus Hava. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and Pegasus Hava.
Diversification Opportunities for Dow Jones and Pegasus Hava
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Dow and Pegasus is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial and Pegasus Hava Tasimaciligi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pegasus Hava Tasimaciligi 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 Pegasus Hava. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pegasus Hava Tasimaciligi has no effect on the direction of Dow Jones i.e., Dow Jones and Pegasus Hava go up and down completely randomly.
Pair Corralation between Dow Jones and Pegasus Hava
Assuming the 90 days trading horizon Dow Jones Industrial is expected to generate 0.47 times more return on investment than Pegasus Hava. However, Dow Jones Industrial is 2.13 times less risky than Pegasus Hava. It trades about 0.27 of its potential returns per unit of risk. Pegasus Hava Tasimaciligi is currently generating about -0.1 per unit of risk. If you would invest 4,238,757 in Dow Jones Industrial on August 28, 2024 and sell it today you would earn a total of 247,274 from holding Dow Jones Industrial or generate 5.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Dow Jones Industrial vs. Pegasus Hava Tasimaciligi
Performance |
| Timeline |
Dow Jones and Pegasus Hava Volatility Contrast
Predicted Return Density |
| Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pegasus Hava Tasimaciligi
Pair trading matchups for Pegasus Hava
Pair Trading with Dow Jones and Pegasus Hava
The main advantage of trading using opposite Dow Jones and Pegasus Hava positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones position performs unexpectedly, Pegasus Hava 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 Pegasus Hava will offset losses from the drop in Pegasus Hava's long position.| Dow Jones vs. CECO Environmental Corp | Dow Jones vs. Western Acquisition Ventures | Dow Jones vs. Tyson Foods | Dow Jones vs. Inflection Point Acquisition |
| Pegasus Hava vs. QNB Finans Finansal | Pegasus Hava vs. Pamel Yenilenebilir Elektrik | Pegasus Hava vs. Brisa Bridgestone Sabanci | Pegasus Hava vs. Dogus Gayrimenkul Yatirim |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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