Correlation Between Dow Jones and 30225VAG2
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By analyzing existing cross correlation between Dow Jones Industrial and EXR 235 15 MAR 32, you can compare the effects of market volatilities on Dow Jones and 30225VAG2 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 30225VAG2. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and 30225VAG2.
Diversification Opportunities for Dow Jones and 30225VAG2
Excellent diversification
The 3 months correlation between Dow and 30225VAG2 is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial and EXR 235 15 MAR 32 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EXR 235 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 30225VAG2. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EXR 235 15 has no effect on the direction of Dow Jones i.e., Dow Jones and 30225VAG2 go up and down completely randomly.
Pair Corralation between Dow Jones and 30225VAG2
Assuming the 90 days trading horizon Dow Jones Industrial is expected to generate 0.7 times more return on investment than 30225VAG2. However, Dow Jones Industrial is 1.43 times less risky than 30225VAG2. It trades about 0.15 of its potential returns per unit of risk. EXR 235 15 MAR 32 is currently generating about -0.05 per unit of risk. If you would invest 3,880,733 in Dow Jones Industrial on September 3, 2024 and sell it today you would earn a total of 597,467 from holding Dow Jones Industrial or generate 15.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 77.6% |
| Values | Daily Returns |
Dow Jones Industrial vs. EXR 235 15 MAR 32
Performance |
| Timeline |
Dow Jones and 30225VAG2 Volatility Contrast
Predicted Return Density |
| Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
EXR 235 15 MAR 32
Pair trading matchups for 30225VAG2
Pair Trading with Dow Jones and 30225VAG2
The main advantage of trading using opposite Dow Jones and 30225VAG2 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones position performs unexpectedly, 30225VAG2 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 30225VAG2 will offset losses from the drop in 30225VAG2's long position.| Dow Jones vs. Eastern Co | Dow Jones vs. Uber Technologies | Dow Jones vs. AKITA Drilling | Dow Jones vs. Chemours Co |
| 30225VAG2 vs. Marchex | 30225VAG2 vs. WiMi Hologram Cloud | 30225VAG2 vs. United States Steel | 30225VAG2 vs. ArcelorMittal SA ADR |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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