Correlation Between Dow Jones and 548661EK9
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By analyzing existing cross correlation between Dow Jones Industrial and LOW 44 08 SEP 25, you can compare the effects of market volatilities on Dow Jones and 548661EK9 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 548661EK9. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and 548661EK9.
Diversification Opportunities for Dow Jones and 548661EK9
Excellent diversification
The 3 months correlation between Dow and 548661EK9 is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial and LOW 44 08 SEP 25 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LOW 44 08 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 548661EK9. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LOW 44 08 has no effect on the direction of Dow Jones i.e., Dow Jones and 548661EK9 go up and down completely randomly.
Pair Corralation between Dow Jones and 548661EK9
Assuming the 90 days trading horizon Dow Jones Industrial is expected to generate 2.18 times more return on investment than 548661EK9. However, Dow Jones is 2.18 times more volatile than LOW 44 08 SEP 25. It trades about 0.08 of its potential returns per unit of risk. LOW 44 08 SEP 25 is currently generating about 0.0 per unit of risk. If you would invest 3,418,997 in Dow Jones Industrial on September 3, 2024 and sell it today you would earn a total of 1,059,203 from holding Dow Jones Industrial or generate 30.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 96.21% |
| Values | Daily Returns |
Dow Jones Industrial vs. LOW 44 08 SEP 25
Performance |
| Timeline |
Dow Jones and 548661EK9 Volatility Contrast
Predicted Return Density |
| Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
LOW 44 08 SEP 25
Pair trading matchups for 548661EK9
Pair Trading with Dow Jones and 548661EK9
The main advantage of trading using opposite Dow Jones and 548661EK9 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones position performs unexpectedly, 548661EK9 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 548661EK9 will offset losses from the drop in 548661EK9's long position.| Dow Jones vs. Eastern Co | Dow Jones vs. Uber Technologies | Dow Jones vs. AKITA Drilling | Dow Jones vs. Chemours Co |
| 548661EK9 vs. AEP TEX INC | 548661EK9 vs. US BANK NATIONAL | 548661EK9 vs. MetLife | 548661EK9 vs. Brera Holdings PLC |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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