Correlation Between Dow Jones and BAYNGR
Specify exactly 2 symbols:
By analyzing existing cross correlation between Dow Jones Industrial and BAYNGR 4625 25 JUN 38, you can compare the effects of market volatilities on Dow Jones and BAYNGR 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 BAYNGR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and BAYNGR.
Diversification Opportunities for Dow Jones and BAYNGR
Very good diversification
The 3 months correlation between Dow and BAYNGR is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial and BAYNGR 4625 25 JUN 38 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BAYNGR 4625 25 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 BAYNGR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BAYNGR 4625 25 has no effect on the direction of Dow Jones i.e., Dow Jones and BAYNGR go up and down completely randomly.
Pair Corralation between Dow Jones and BAYNGR
Assuming the 90 days trading horizon Dow Jones Industrial is expected to generate 0.4 times more return on investment than BAYNGR. However, Dow Jones Industrial is 2.52 times less risky than BAYNGR. It trades about 0.1 of its potential returns per unit of risk. BAYNGR 4625 25 JUN 38 is currently generating about 0.02 per unit of risk. If you would invest 3,528,252 in Dow Jones Industrial on August 26, 2024 and sell it today you would earn a total of 901,399 from holding Dow Jones Industrial or generate 25.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 61.86% |
| Values | Daily Returns |
Dow Jones Industrial vs. BAYNGR 4625 25 JUN 38
Performance |
| Timeline |
Dow Jones and BAYNGR Volatility Contrast
Predicted Return Density |
| Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
BAYNGR 4625 25 JUN 38
Pair trading matchups for BAYNGR
Pair Trading with Dow Jones and BAYNGR
The main advantage of trading using opposite Dow Jones and BAYNGR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones position performs unexpectedly, BAYNGR 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 BAYNGR will offset losses from the drop in BAYNGR's long position.| Dow Jones vs. Vistra Energy Corp | Dow Jones vs. Fluence Energy | Dow Jones vs. Old Republic International | Dow Jones vs. Empresa Distribuidora y |
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.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |