Correlation Between Dow Jones and 26442CBH6
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By analyzing existing cross correlation between Dow Jones Industrial and DUK 355 15 MAR 52, you can compare the effects of market volatilities on Dow Jones and 26442CBH6 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 26442CBH6. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and 26442CBH6.
Diversification Opportunities for Dow Jones and 26442CBH6
Very good diversification
The 3 months correlation between Dow and 26442CBH6 is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial and DUK 355 15 MAR 52 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DUK 355 15 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 26442CBH6. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DUK 355 15 has no effect on the direction of Dow Jones i.e., Dow Jones and 26442CBH6 go up and down completely randomly.
Pair Corralation between Dow Jones and 26442CBH6
Assuming the 90 days trading horizon Dow Jones Industrial is expected to generate 0.44 times more return on investment than 26442CBH6. However, Dow Jones Industrial is 2.28 times less risky than 26442CBH6. It trades about 0.27 of its potential returns per unit of risk. DUK 355 15 MAR 52 is currently generating about -0.14 per unit of risk. If you would invest 4,223,305 in Dow Jones Industrial on August 30, 2024 and sell it today you would earn a total of 248,901 from holding Dow Jones Industrial or generate 5.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 73.91% |
| Values | Daily Returns |
Dow Jones Industrial vs. DUK 355 15 MAR 52
Performance |
| Timeline |
Dow Jones and 26442CBH6 Volatility Contrast
Predicted Return Density |
| Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
DUK 355 15 MAR 52
Pair trading matchups for 26442CBH6
Pair Trading with Dow Jones and 26442CBH6
The main advantage of trading using opposite Dow Jones and 26442CBH6 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones position performs unexpectedly, 26442CBH6 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 26442CBH6 will offset losses from the drop in 26442CBH6's long position.| Dow Jones vs. Skillful Craftsman Education | Dow Jones vs. Acco Brands | Dow Jones vs. Cracker Barrel Old | Dow Jones vs. Coursera |
| 26442CBH6 vs. Monster Beverage Corp | 26442CBH6 vs. Boston Beer | 26442CBH6 vs. National Beverage Corp | 26442CBH6 vs. Fomento Economico Mexicano |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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