Correlation Between Dow Jones and 693304AS6
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By analyzing existing cross correlation between Dow Jones Industrial and PECO ENERGY 415, you can compare the effects of market volatilities on Dow Jones and 693304AS6 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 693304AS6. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and 693304AS6.
Diversification Opportunities for Dow Jones and 693304AS6
Average diversification
The 3 months correlation between Dow and 693304AS6 is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial and PECO ENERGY 415 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PECO ENERGY 415 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 693304AS6. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PECO ENERGY 415 has no effect on the direction of Dow Jones i.e., Dow Jones and 693304AS6 go up and down completely randomly.
Pair Corralation between Dow Jones and 693304AS6
Assuming the 90 days trading horizon Dow Jones is expected to generate 135.27 times less return on investment than 693304AS6. But when comparing it to its historical volatility, Dow Jones Industrial is 139.26 times less risky than 693304AS6. It trades about 0.09 of its potential returns per unit of risk. PECO ENERGY 415 is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 8,740 in PECO ENERGY 415 on August 31, 2024 and sell it today you would lose (702.00) from holding PECO ENERGY 415 or give up 8.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 43.51% |
| Values | Daily Returns |
Dow Jones Industrial vs. PECO ENERGY 415
Performance |
| Timeline |
Dow Jones and 693304AS6 Volatility Contrast
Predicted Return Density |
| Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
PECO ENERGY 415
Pair trading matchups for 693304AS6
Pair Trading with Dow Jones and 693304AS6
The main advantage of trading using opposite Dow Jones and 693304AS6 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones position performs unexpectedly, 693304AS6 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 693304AS6 will offset losses from the drop in 693304AS6's long position.| Dow Jones vs. Aerofoam Metals | Dow Jones vs. ACG Metals Limited | Dow Jones vs. China Clean Energy | Dow Jones vs. Fast Retailing Co |
| 693304AS6 vs. Biglari Holdings | 693304AS6 vs. Sweetgreen | 693304AS6 vs. Lipocine | 693304AS6 vs. enVVeno Medical Corp |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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