Correlation Between Dow Jones and Tokmanni Group
Can any of the company-specific risk be diversified away by investing in both Dow Jones and Tokmanni Group 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 Tokmanni Group 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 Tokmanni Group Oyj, you can compare the effects of market volatilities on Dow Jones and Tokmanni Group 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 Tokmanni Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and Tokmanni Group.
Diversification Opportunities for Dow Jones and Tokmanni Group
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Dow and Tokmanni is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial and Tokmanni Group Oyj in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tokmanni Group Oyj 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 Tokmanni Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tokmanni Group Oyj has no effect on the direction of Dow Jones i.e., Dow Jones and Tokmanni Group go up and down completely randomly.
Pair Corralation between Dow Jones and Tokmanni Group
Assuming the 90 days trading horizon Dow Jones Industrial is expected to generate 0.34 times more return on investment than Tokmanni Group. However, Dow Jones Industrial is 2.92 times less risky than Tokmanni Group. It trades about 0.13 of its potential returns per unit of risk. Tokmanni Group Oyj is currently generating about 0.0 per unit of risk. If you would invest 3,541,698 in Dow Jones Industrial on August 24, 2024 and sell it today you would earn a total of 845,337 from holding Dow Jones Industrial or generate 23.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dow Jones Industrial vs. Tokmanni Group Oyj
Performance |
| Timeline |
Dow Jones and Tokmanni Group Volatility Contrast
Predicted Return Density |
| Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
Tokmanni Group Oyj
Pair trading matchups for Tokmanni Group
Pair Trading with Dow Jones and Tokmanni Group
The main advantage of trading using opposite Dow Jones and Tokmanni Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones position performs unexpectedly, Tokmanni Group 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 Tokmanni Group will offset losses from the drop in Tokmanni Group's long position.| Dow Jones vs. Sphere Entertainment Co | Dow Jones vs. Perseus Mining Limited | Dow Jones vs. Titan Machinery | Dow Jones vs. Simon Property Group |
| Tokmanni Group vs. Sampo Oyj A | Tokmanni Group vs. Harvia Oyj | Tokmanni Group vs. Nordea Bank Abp | Tokmanni Group vs. Fortum Oyj |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |