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
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Dow and CONSOLIDATED is -0.05. 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 is expected to generate 219.72 times less return on investment than CONSOLIDATED. But when comparing it to its historical volatility, Dow Jones Industrial is 179.42 times less risky than CONSOLIDATED. It trades about 0.09 of its potential returns per unit of risk. CONSOLIDATED EDISON N is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 8,482 in CONSOLIDATED EDISON N on November 29, 2024 and sell it today you would lose (26.00) from holding CONSOLIDATED EDISON N or give up 0.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 51.92% |
| 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. Starbucks | Dow Jones vs. Westinghouse Air Brake | Dow Jones vs. Finnair Oyj | Dow Jones vs. Mesa Air Group |
| CONSOLIDATED vs. Marti Technologies | CONSOLIDATED vs. Alto Neuroscience, | CONSOLIDATED vs. Sphere 3D Corp | CONSOLIDATED vs. Molecular Partners AG |
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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