Correlation Between Dow Jones and 06051GKH1
Specify exactly 2 symbols:
By analyzing existing cross correlation between Dow Jones Industrial and BAC 5624556 04 FEB 28, you can compare the effects of market volatilities on Dow Jones and 06051GKH1 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 06051GKH1. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and 06051GKH1.
Diversification Opportunities for Dow Jones and 06051GKH1
Weak diversification
The 3 months correlation between Dow and 06051GKH1 is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial and BAC 5624556 04 FEB 28 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BAC 5624556 04 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 06051GKH1. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BAC 5624556 04 has no effect on the direction of Dow Jones i.e., Dow Jones and 06051GKH1 go up and down completely randomly.
Pair Corralation between Dow Jones and 06051GKH1
Assuming the 90 days trading horizon Dow Jones Industrial is expected to generate 1.93 times more return on investment than 06051GKH1. However, Dow Jones is 1.93 times more volatile than BAC 5624556 04 FEB 28. It trades about 0.09 of its potential returns per unit of risk. BAC 5624556 04 FEB 28 is currently generating about 0.02 per unit of risk. If you would invest 3,351,765 in Dow Jones Industrial on August 31, 2024 and sell it today you would earn a total of 1,139,300 from holding Dow Jones Industrial or generate 33.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 94.14% |
| Values | Daily Returns |
Dow Jones Industrial vs. BAC 5624556 04 FEB 28
Performance |
| Timeline |
Dow Jones and 06051GKH1 Volatility Contrast
Predicted Return Density |
| Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
BAC 5624556 04 FEB 28
Pair trading matchups for 06051GKH1
Pair Trading with Dow Jones and 06051GKH1
The main advantage of trading using opposite Dow Jones and 06051GKH1 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones position performs unexpectedly, 06051GKH1 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 06051GKH1 will offset losses from the drop in 06051GKH1's long position.| Dow Jones vs. Aerofoam Metals | Dow Jones vs. ACG Metals Limited | Dow Jones vs. China Clean Energy | Dow Jones vs. Fast Retailing Co |
| 06051GKH1 vs. Amgen Inc | 06051GKH1 vs. Everus Construction Group | 06051GKH1 vs. Jacobs Solutions | 06051GKH1 vs. Xponential Fitness |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |