Correlation Between Dow Jones and CHUBB
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By analyzing existing cross correlation between Dow Jones Industrial and CHUBB P 6, you can compare the effects of market volatilities on Dow Jones and CHUBB 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 CHUBB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and CHUBB.
Diversification Opportunities for Dow Jones and CHUBB
Weak diversification
The 3 months correlation between Dow and CHUBB is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial and CHUBB P 6 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CHUBB P 6 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 CHUBB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CHUBB P 6 has no effect on the direction of Dow Jones i.e., Dow Jones and CHUBB go up and down completely randomly.
Pair Corralation between Dow Jones and CHUBB
Assuming the 90 days trading horizon Dow Jones Industrial is expected to under-perform the CHUBB. In addition to that, Dow Jones is 1.52 times more volatile than CHUBB P 6. It trades about -0.19 of its total potential returns per unit of risk. CHUBB P 6 is currently generating about 0.0 per unit of volatility. If you would invest 10,641 in CHUBB P 6 on December 9, 2024 and sell it today you would lose (5.00) from holding CHUBB P 6 or give up 0.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dow Jones Industrial vs. CHUBB P 6
Performance |
| Timeline |
Dow Jones and CHUBB Volatility Contrast
Predicted Return Density |
| Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
CHUBB P 6
Pair trading matchups for CHUBB
Pair Trading with Dow Jones and CHUBB
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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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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