Correlation Between Dow Jones and HLNLN
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By analyzing existing cross correlation between Dow Jones Industrial and HLNLN 4 24 MAR 52, you can compare the effects of market volatilities on Dow Jones and HLNLN 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 HLNLN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and HLNLN.
Diversification Opportunities for Dow Jones and HLNLN
Excellent diversification
The 3 months correlation between Dow and HLNLN is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial and HLNLN 4 24 MAR 52 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HLNLN 4 24 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 HLNLN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HLNLN 4 24 has no effect on the direction of Dow Jones i.e., Dow Jones and HLNLN go up and down completely randomly.
Pair Corralation between Dow Jones and HLNLN
Assuming the 90 days trading horizon Dow Jones Industrial is expected to generate 0.53 times more return on investment than HLNLN. However, Dow Jones Industrial is 1.9 times less risky than HLNLN. It trades about 0.14 of its potential returns per unit of risk. HLNLN 4 24 MAR 52 is currently generating about 0.06 per unit of risk. If you would invest 3,885,286 in Dow Jones Industrial on August 26, 2024 and sell it today you would earn a total of 544,365 from holding Dow Jones Industrial or generate 14.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 78.74% |
| Values | Daily Returns |
Dow Jones Industrial vs. HLNLN 4 24 MAR 52
Performance |
| Timeline |
Dow Jones and HLNLN Volatility Contrast
Predicted Return Density |
| Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
HLNLN 4 24 MAR 52
Pair trading matchups for HLNLN
Pair Trading with Dow Jones and HLNLN
The main advantage of trading using opposite Dow Jones and HLNLN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones position performs unexpectedly, HLNLN 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 HLNLN will offset losses from the drop in HLNLN's long position.| Dow Jones vs. MI Homes | Dow Jones vs. Franklin Street Properties | Dow Jones vs. Summit Hotel Properties | Dow Jones vs. Portillos |
| HLNLN vs. Univest Pennsylvania | HLNLN vs. Glacier Bancorp | HLNLN vs. Mid Atlantic Home Health | HLNLN vs. BCB Bancorp |
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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