Correlation Between Dow Jones and Sparinv SICAV
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By analyzing existing cross correlation between Dow Jones Industrial and Sparinv SICAV, you can compare the effects of market volatilities on Dow Jones and Sparinv SICAV 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 Sparinv SICAV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and Sparinv SICAV.
Diversification Opportunities for Dow Jones and Sparinv SICAV
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Dow and Sparinv is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial and Sparinv SICAV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sparinv SICAV 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 Sparinv SICAV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sparinv SICAV has no effect on the direction of Dow Jones i.e., Dow Jones and Sparinv SICAV go up and down completely randomly.
Pair Corralation between Dow Jones and Sparinv SICAV
Assuming the 90 days trading horizon Dow Jones Industrial is expected to generate 0.97 times more return on investment than Sparinv SICAV. However, Dow Jones Industrial is 1.03 times less risky than Sparinv SICAV. It trades about 0.11 of its potential returns per unit of risk. Sparinv SICAV is currently generating about -0.49 per unit of risk. If you would invest 4,284,026 in Dow Jones Industrial on October 21, 2024 and sell it today you would earn a total of 64,757 from holding Dow Jones Industrial or generate 1.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 25.0% |
| Values | Daily Returns |
Dow Jones Industrial vs. Sparinv SICAV
Performance |
| Timeline |
Dow Jones and Sparinv SICAV Volatility Contrast
Predicted Return Density |
| Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Dow Jones and Sparinv SICAV
The main advantage of trading using opposite Dow Jones and Sparinv SICAV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones position performs unexpectedly, Sparinv SICAV 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 Sparinv SICAV will offset losses from the drop in Sparinv SICAV's long position.| Dow Jones vs. SkyWest | Dow Jones vs. Air Transport Services | Dow Jones vs. LATAM Airlines Group | Dow Jones vs. Emerson Radio |
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.
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