Correlation Between Dow Jones and Protagenic Therapeutics
Can any of the company-specific risk be diversified away by investing in both Dow Jones and Protagenic Therapeutics 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 Protagenic Therapeutics 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 Protagenic Therapeutics, you can compare the effects of market volatilities on Dow Jones and Protagenic Therapeutics 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 Protagenic Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and Protagenic Therapeutics.
Diversification Opportunities for Dow Jones and Protagenic Therapeutics
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Dow and Protagenic is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial and Protagenic Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Protagenic Therapeutics 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 Protagenic Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Protagenic Therapeutics has no effect on the direction of Dow Jones i.e., Dow Jones and Protagenic Therapeutics go up and down completely randomly.
Pair Corralation between Dow Jones and Protagenic Therapeutics
Assuming the 90 days trading horizon Dow Jones Industrial is expected to generate 0.2 times more return on investment than Protagenic Therapeutics. However, Dow Jones Industrial is 5.12 times less risky than Protagenic Therapeutics. It trades about 0.27 of its potential returns per unit of risk. Protagenic Therapeutics is currently generating about -0.45 per unit of risk. If you would invest 4,238,757 in Dow Jones Industrial on August 29, 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 Against |
| Strength | Weak |
| Accuracy | 22.73% |
| Values | Daily Returns |
Dow Jones Industrial vs. Protagenic Therapeutics
Performance |
| Timeline |
Dow Jones and Protagenic Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
Protagenic Therapeutics
Pair trading matchups for Protagenic Therapeutics
Pair Trading with Dow Jones and Protagenic Therapeutics
The main advantage of trading using opposite Dow Jones and Protagenic Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones position performs unexpectedly, Protagenic Therapeutics 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 Protagenic Therapeutics will offset losses from the drop in Protagenic Therapeutics' 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 |
| Protagenic Therapeutics vs. Eliem Therapeutics | Protagenic Therapeutics vs. Scpharmaceuticals | Protagenic Therapeutics vs. Milestone Pharmaceuticals | Protagenic Therapeutics vs. Seres Therapeutics |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |