Correlation Between Dow Jones and CINTAS
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By analyzing existing cross correlation between Dow Jones Industrial and CINTAS P NO, you can compare the effects of market volatilities on Dow Jones and CINTAS 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 CINTAS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and CINTAS.
Diversification Opportunities for Dow Jones and CINTAS
Good diversification
The 3 months correlation between Dow and CINTAS is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial and CINTAS P NO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CINTAS P NO 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 CINTAS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CINTAS P NO has no effect on the direction of Dow Jones i.e., Dow Jones and CINTAS go up and down completely randomly.
Pair Corralation between Dow Jones and CINTAS
Assuming the 90 days trading horizon Dow Jones Industrial is expected to generate 3.16 times more return on investment than CINTAS. However, Dow Jones is 3.16 times more volatile than CINTAS P NO. It trades about 0.11 of its potential returns per unit of risk. CINTAS P NO is currently generating about 0.02 per unit of risk. If you would invest 3,838,012 in Dow Jones Industrial on September 1, 2024 and sell it today you would earn a total of 653,053 from holding Dow Jones Industrial or generate 17.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.08% |
| Values | Daily Returns |
Dow Jones Industrial vs. CINTAS P NO
Performance |
| Timeline |
Dow Jones and CINTAS Volatility Contrast
Predicted Return Density |
| Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
CINTAS P NO
Pair trading matchups for CINTAS
Pair Trading with Dow Jones and CINTAS
The main advantage of trading using opposite Dow Jones and CINTAS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones position performs unexpectedly, CINTAS 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 CINTAS will offset losses from the drop in CINTAS's long position.| Dow Jones vs. Catalyst Pharmaceuticals | Dow Jones vs. Sphere Entertainment Co | Dow Jones vs. National CineMedia | Dow Jones vs. Mink Therapeutics |
| CINTAS vs. Northstar Clean Technologies | CINTAS vs. Perseus Mining Limited | CINTAS vs. Chester Mining | CINTAS vs. Datadog |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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