Correlation Between Dow Jones and CORNING
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By analyzing existing cross correlation between Dow Jones Industrial and CORNING INC 585, you can compare the effects of market volatilities on Dow Jones and CORNING 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 CORNING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and CORNING.
Diversification Opportunities for Dow Jones and CORNING
Excellent diversification
The 3 months correlation between Dow and CORNING is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial and CORNING INC 585 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CORNING INC 585 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 CORNING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CORNING INC 585 has no effect on the direction of Dow Jones i.e., Dow Jones and CORNING go up and down completely randomly.
Pair Corralation between Dow Jones and CORNING
Assuming the 90 days trading horizon Dow Jones Industrial is expected to generate 0.46 times more return on investment than CORNING. However, Dow Jones Industrial is 2.16 times less risky than CORNING. It trades about 0.12 of its potential returns per unit of risk. CORNING INC 585 is currently generating about 0.02 per unit of risk. If you would invest 3,640,493 in Dow Jones Industrial on September 4, 2024 and sell it today you would earn a total of 837,707 from holding Dow Jones Industrial or generate 23.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 80.08% |
| Values | Daily Returns |
Dow Jones Industrial vs. CORNING INC 585
Performance |
| Timeline |
Dow Jones and CORNING Volatility Contrast
Predicted Return Density |
| Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
CORNING INC 585
Pair trading matchups for CORNING
Pair Trading with Dow Jones and CORNING
The main advantage of trading using opposite Dow Jones and CORNING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones position performs unexpectedly, CORNING 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 CORNING will offset losses from the drop in CORNING's long position.| Dow Jones vs. Gentex | Dow Jones vs. American Axle Manufacturing | Dow Jones vs. Pearson PLC ADR | Dow Jones vs. Marine Products |
| CORNING vs. Eldorado Gold Corp | CORNING vs. Stepan Company | CORNING vs. Noble plc | CORNING vs. Olympic Steel |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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