Correlation Between Dow Jones and APAAU
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By analyzing existing cross correlation between Dow Jones Industrial and APAAU 425 15 JUL 27, you can compare the effects of market volatilities on Dow Jones and APAAU 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 APAAU. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and APAAU.
Diversification Opportunities for Dow Jones and APAAU
Weak diversification
The 3 months correlation between Dow and APAAU is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial and APAAU 425 15 JUL 27 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on APAAU 425 15 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 APAAU. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of APAAU 425 15 has no effect on the direction of Dow Jones i.e., Dow Jones and APAAU go up and down completely randomly.
Pair Corralation between Dow Jones and APAAU
Assuming the 90 days trading horizon Dow Jones Industrial is expected to generate 0.98 times more return on investment than APAAU. However, Dow Jones Industrial is 1.02 times less risky than APAAU. It trades about 0.08 of its potential returns per unit of risk. APAAU 425 15 JUL 27 is currently generating about 0.03 per unit of risk. If you would invest 3,359,792 in Dow Jones Industrial on August 28, 2024 and sell it today you would earn a total of 1,113,865 from holding Dow Jones Industrial or generate 33.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 27.88% |
| Values | Daily Returns |
Dow Jones Industrial vs. APAAU 425 15 JUL 27
Performance |
| Timeline |
Dow Jones and APAAU Volatility Contrast
Predicted Return Density |
| Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
APAAU 425 15 JUL 27
Pair trading matchups for APAAU
Pair Trading with Dow Jones and APAAU
The main advantage of trading using opposite Dow Jones and APAAU positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones position performs unexpectedly, APAAU 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 APAAU will offset losses from the drop in APAAU's long position.| Dow Jones vs. Meiwu Technology Co | Dow Jones vs. 17 Education Technology | Dow Jones vs. 51Talk Online Education | Dow Jones vs. Afya |
| APAAU vs. East Africa Metals | APAAU vs. Ferrari NV | APAAU vs. Sandstorm Gold Ltd | APAAU vs. Rivian Automotive |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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