Correlation Between Dow Jones and Quantex Fund
Can any of the company-specific risk be diversified away by investing in both Dow Jones and Quantex Fund 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 Quantex Fund 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 Quantex Fund Adviser, you can compare the effects of market volatilities on Dow Jones and Quantex Fund 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 Quantex Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and Quantex Fund.
Diversification Opportunities for Dow Jones and Quantex Fund
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Dow and Quantex is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial and Quantex Fund Adviser in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Quantex Fund Adviser 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 Quantex Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Quantex Fund Adviser has no effect on the direction of Dow Jones i.e., Dow Jones and Quantex Fund go up and down completely randomly.
Pair Corralation between Dow Jones and Quantex Fund
Assuming the 90 days trading horizon Dow Jones Industrial is expected to generate 1.36 times more return on investment than Quantex Fund. However, Dow Jones is 1.36 times more volatile than Quantex Fund Adviser. It trades about 0.27 of its potential returns per unit of risk. Quantex Fund Adviser is currently generating about 0.11 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 Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dow Jones Industrial vs. Quantex Fund Adviser
Performance |
| Timeline |
Dow Jones and Quantex Fund Volatility Contrast
Predicted Return Density |
| Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
Quantex Fund Adviser
Pair trading matchups for Quantex Fund
Pair Trading with Dow Jones and Quantex Fund
The main advantage of trading using opposite Dow Jones and Quantex Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones position performs unexpectedly, Quantex Fund 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 Quantex Fund will offset losses from the drop in Quantex Fund'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 |
| Quantex Fund vs. Quantex Fund Retail | Quantex Fund vs. Nuveen Mid Cap | Quantex Fund vs. Bny Mellon Mid | Quantex Fund vs. Keeley Mid Cap |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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