Correlation Between Dow Jones and KIMBERLY
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By analyzing existing cross correlation between Dow Jones Industrial and KIMBERLY CLARK P, you can compare the effects of market volatilities on Dow Jones and KIMBERLY 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 KIMBERLY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and KIMBERLY.
Diversification Opportunities for Dow Jones and KIMBERLY
Very good diversification
The 3 months correlation between Dow and KIMBERLY is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial and KIMBERLY CLARK P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KIMBERLY CLARK P 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 KIMBERLY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KIMBERLY CLARK P has no effect on the direction of Dow Jones i.e., Dow Jones and KIMBERLY go up and down completely randomly.
Pair Corralation between Dow Jones and KIMBERLY
Assuming the 90 days trading horizon Dow Jones is expected to generate 1.09 times less return on investment than KIMBERLY. But when comparing it to its historical volatility, Dow Jones Industrial is 1.78 times less risky than KIMBERLY. It trades about 0.34 of its potential returns per unit of risk. KIMBERLY CLARK P is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 11,604 in KIMBERLY CLARK P on September 2, 2024 and sell it today you would earn a total of 637.00 from holding KIMBERLY CLARK P or generate 5.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 76.19% |
| Values | Daily Returns |
Dow Jones Industrial vs. KIMBERLY CLARK P
Performance |
| Timeline |
Dow Jones and KIMBERLY Volatility Contrast
Predicted Return Density |
| Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
KIMBERLY CLARK P
Pair trading matchups for KIMBERLY
Pair Trading with Dow Jones and KIMBERLY
The main advantage of trading using opposite Dow Jones and KIMBERLY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones position performs unexpectedly, KIMBERLY 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 KIMBERLY will offset losses from the drop in KIMBERLY's long position.| Dow Jones vs. Dream Finders Homes | Dow Jones vs. GEN Restaurant Group, | Dow Jones vs. National Beverage Corp | Dow Jones vs. BJs Restaurants |
| KIMBERLY vs. Aegon NV ADR | KIMBERLY vs. Citizens | KIMBERLY vs. Sun Life Financial | KIMBERLY vs. Grocery Outlet Holding |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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