Correlation Between Dow Jones and BRASKM
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By analyzing existing cross correlation between Dow Jones Industrial and BRASKM 45 31 JAN 30, you can compare the effects of market volatilities on Dow Jones and BRASKM 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 BRASKM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and BRASKM.
Diversification Opportunities for Dow Jones and BRASKM
Very good diversification
The 3 months correlation between Dow and BRASKM is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial and BRASKM 45 31 JAN 30 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BRASKM 45 31 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 BRASKM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BRASKM 45 31 has no effect on the direction of Dow Jones i.e., Dow Jones and BRASKM go up and down completely randomly.
Pair Corralation between Dow Jones and BRASKM
Assuming the 90 days trading horizon Dow Jones Industrial is expected to under-perform the BRASKM. But the index apears to be less risky and, when comparing its historical volatility, Dow Jones Industrial is 1.07 times less risky than BRASKM. The index trades about -0.25 of its potential returns per unit of risk. The BRASKM 45 31 JAN 30 is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 8,589 in BRASKM 45 31 JAN 30 on November 29, 2024 and sell it today you would earn a total of 66.00 from holding BRASKM 45 31 JAN 30 or generate 0.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 38.1% |
| Values | Daily Returns |
Dow Jones Industrial vs. BRASKM 45 31 JAN 30
Performance |
| Timeline |
Dow Jones and BRASKM Volatility Contrast
Predicted Return Density |
| Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
BRASKM 45 31 JAN 30
Pair trading matchups for BRASKM
Pair Trading with Dow Jones and BRASKM
The main advantage of trading using opposite Dow Jones and BRASKM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones position performs unexpectedly, BRASKM 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 BRASKM will offset losses from the drop in BRASKM's long position.| Dow Jones vs. Starbucks | Dow Jones vs. Westinghouse Air Brake | Dow Jones vs. Finnair Oyj | Dow Jones vs. Mesa Air Group |
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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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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