Correlation Between Dow Jones and 031162DE7
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By analyzing existing cross correlation between Dow Jones Industrial and AMGN 335 22 FEB 32, you can compare the effects of market volatilities on Dow Jones and 031162DE7 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 031162DE7. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and 031162DE7.
Diversification Opportunities for Dow Jones and 031162DE7
Pay attention - limited upside
The 3 months correlation between Dow and 031162DE7 is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial and AMGN 335 22 FEB 32 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMGN 335 22 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 031162DE7. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMGN 335 22 has no effect on the direction of Dow Jones i.e., Dow Jones and 031162DE7 go up and down completely randomly.
Pair Corralation between Dow Jones and 031162DE7
Assuming the 90 days trading horizon Dow Jones Industrial is expected to generate 1.58 times more return on investment than 031162DE7. However, Dow Jones is 1.58 times more volatile than AMGN 335 22 FEB 32. It trades about 0.37 of its potential returns per unit of risk. AMGN 335 22 FEB 32 is currently generating about -0.21 per unit of risk. If you would invest 4,176,346 in Dow Jones Industrial on September 1, 2024 and sell it today you would earn a total of 314,719 from holding Dow Jones Industrial or generate 7.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dow Jones Industrial vs. AMGN 335 22 FEB 32
Performance |
| Timeline |
Dow Jones and 031162DE7 Volatility Contrast
Predicted Return Density |
| Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
AMGN 335 22 FEB 32
Pair trading matchups for 031162DE7
Pair Trading with Dow Jones and 031162DE7
The main advantage of trading using opposite Dow Jones and 031162DE7 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones position performs unexpectedly, 031162DE7 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 031162DE7 will offset losses from the drop in 031162DE7's long position.| Dow Jones vs. Catalyst Pharmaceuticals | Dow Jones vs. Sphere Entertainment Co | Dow Jones vs. National CineMedia | Dow Jones vs. Mink Therapeutics |
| 031162DE7 vs. Playtika Holding Corp | 031162DE7 vs. Inflection Point Acquisition | 031162DE7 vs. Citizens Bancorp Investment | 031162DE7 vs. Morgan Stanley |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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