Correlation Between Dow Jones and CELARA
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By analyzing existing cross correlation between Dow Jones Industrial and CELARA 3875 02 NOV 27, you can compare the effects of market volatilities on Dow Jones and CELARA 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 CELARA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and CELARA.
Diversification Opportunities for Dow Jones and CELARA
Significant diversification
The 3 months correlation between Dow and CELARA is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial and CELARA 3875 02 NOV 27 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CELARA 3875 02 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 CELARA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CELARA 3875 02 has no effect on the direction of Dow Jones i.e., Dow Jones and CELARA go up and down completely randomly.
Pair Corralation between Dow Jones and CELARA
Assuming the 90 days trading horizon Dow Jones Industrial is expected to generate 1.15 times more return on investment than CELARA. However, Dow Jones is 1.15 times more volatile than CELARA 3875 02 NOV 27. It trades about 0.08 of its potential returns per unit of risk. CELARA 3875 02 NOV 27 is currently generating about 0.01 per unit of risk. If you would invest 3,378,148 in Dow Jones Industrial on August 29, 2024 and sell it today you would earn a total of 1,094,058 from holding Dow Jones Industrial or generate 32.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 68.15% |
| Values | Daily Returns |
Dow Jones Industrial vs. CELARA 3875 02 NOV 27
Performance |
| Timeline |
Dow Jones and CELARA Volatility Contrast
Predicted Return Density |
| Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
CELARA 3875 02 NOV 27
Pair trading matchups for CELARA
Pair Trading with Dow Jones and CELARA
The main advantage of trading using opposite Dow Jones and CELARA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones position performs unexpectedly, CELARA 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 CELARA will offset losses from the drop in CELARA's long position.| Dow Jones vs. Kaltura | Dow Jones vs. Artisan Partners Asset | Dow Jones vs. US Global Investors | Dow Jones vs. Analog Devices |
| CELARA vs. Olympic Steel | CELARA vs. Western Sierra Mining | CELARA vs. Allient | CELARA vs. Cardinal Health |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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