Correlation Between Dow Jones and CONSOLIDATED
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By analyzing existing cross correlation between Dow Jones Industrial and CONSOLIDATED EDISON N, you can compare the effects of market volatilities on Dow Jones and CONSOLIDATED 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 CONSOLIDATED. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and CONSOLIDATED.
Diversification Opportunities for Dow Jones and CONSOLIDATED
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Dow and CONSOLIDATED is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial and CONSOLIDATED EDISON N in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CONSOLIDATED EDISON 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 CONSOLIDATED. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CONSOLIDATED EDISON has no effect on the direction of Dow Jones i.e., Dow Jones and CONSOLIDATED go up and down completely randomly.
Pair Corralation between Dow Jones and CONSOLIDATED
Assuming the 90 days trading horizon Dow Jones Industrial is expected to generate 1.2 times more return on investment than CONSOLIDATED. However, Dow Jones is 1.2 times more volatile than CONSOLIDATED EDISON N. It trades about 0.17 of its potential returns per unit of risk. CONSOLIDATED EDISON N is currently generating about -0.06 per unit of risk. If you would invest 4,290,695 in Dow Jones Industrial on October 24, 2024 and sell it today you would earn a total of 111,886 from holding Dow Jones Industrial or generate 2.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 84.21% |
| Values | Daily Returns |
Dow Jones Industrial vs. CONSOLIDATED EDISON N
Performance |
| Timeline |
Dow Jones and CONSOLIDATED Volatility Contrast
Predicted Return Density |
| Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
CONSOLIDATED EDISON N
Pair trading matchups for CONSOLIDATED
Pair Trading with Dow Jones and CONSOLIDATED
The main advantage of trading using opposite Dow Jones and CONSOLIDATED positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones position performs unexpectedly, CONSOLIDATED 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 CONSOLIDATED will offset losses from the drop in CONSOLIDATED's long position.| Dow Jones vs. Transocean | Dow Jones vs. Noble plc | Dow Jones vs. Evolution Gaming Group | Dow Jones vs. Addus HomeCare |
| CONSOLIDATED vs. BRP Inc | CONSOLIDATED vs. Shake Shack | CONSOLIDATED vs. RLJ Lodging Trust | CONSOLIDATED vs. Ballys Corp |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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