Correlation Between Dow Jones and PACIFIC
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By analyzing existing cross correlation between Dow Jones Industrial and PACIFIC GAS AND, you can compare the effects of market volatilities on Dow Jones and PACIFIC 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 PACIFIC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and PACIFIC.
Diversification Opportunities for Dow Jones and PACIFIC
Very good diversification
The 3 months correlation between Dow and PACIFIC is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial and PACIFIC GAS AND in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PACIFIC GAS AND 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 PACIFIC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PACIFIC GAS AND has no effect on the direction of Dow Jones i.e., Dow Jones and PACIFIC go up and down completely randomly.
Pair Corralation between Dow Jones and PACIFIC
Assuming the 90 days trading horizon Dow Jones is expected to generate 38.39 times less return on investment than PACIFIC. But when comparing it to its historical volatility, Dow Jones Industrial is 82.51 times less risky than PACIFIC. It trades about 0.11 of its potential returns per unit of risk. PACIFIC GAS AND is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 6,777 in PACIFIC GAS AND on September 12, 2024 and sell it today you would earn a total of 958.00 from holding PACIFIC GAS AND or generate 14.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 88.2% |
| Values | Daily Returns |
Dow Jones Industrial vs. PACIFIC GAS AND
Performance |
| Timeline |
Dow Jones and PACIFIC Volatility Contrast
Predicted Return Density |
| Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
PACIFIC GAS AND
Pair trading matchups for PACIFIC
Pair Trading with Dow Jones and PACIFIC
The main advantage of trading using opposite Dow Jones and PACIFIC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones position performs unexpectedly, PACIFIC 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 PACIFIC will offset losses from the drop in PACIFIC's long position.| Dow Jones vs. Aeye Inc | Dow Jones vs. Gentex | Dow Jones vs. Marine Products | Dow Jones vs. CarsalesCom Ltd ADR |
| PACIFIC vs. CenterPoint Energy | PACIFIC vs. Kenon Holdings | PACIFIC vs. Perseus Mining Limited | PACIFIC vs. NiSource |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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