Correlation Between Dow Jones and REPUBLIC
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By analyzing existing cross correlation between Dow Jones Industrial and REPUBLIC SVCS INC, you can compare the effects of market volatilities on Dow Jones and REPUBLIC 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 REPUBLIC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and REPUBLIC.
Diversification Opportunities for Dow Jones and REPUBLIC
Excellent diversification
The 3 months correlation between Dow and REPUBLIC is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial and REPUBLIC SVCS INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on REPUBLIC SVCS INC 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 REPUBLIC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of REPUBLIC SVCS INC has no effect on the direction of Dow Jones i.e., Dow Jones and REPUBLIC go up and down completely randomly.
Pair Corralation between Dow Jones and REPUBLIC
Assuming the 90 days trading horizon Dow Jones Industrial is expected to generate 1.27 times more return on investment than REPUBLIC. However, Dow Jones is 1.27 times more volatile than REPUBLIC SVCS INC. It trades about 0.29 of its potential returns per unit of risk. REPUBLIC SVCS INC is currently generating about -0.22 per unit of risk. If you would invest 4,214,154 in Dow Jones Industrial on August 31, 2024 and sell it today you would earn a total of 258,052 from holding Dow Jones Industrial or generate 6.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dow Jones Industrial vs. REPUBLIC SVCS INC
Performance |
| Timeline |
Dow Jones and REPUBLIC Volatility Contrast
Predicted Return Density |
| Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
REPUBLIC SVCS INC
Pair trading matchups for REPUBLIC
Pair Trading with Dow Jones and REPUBLIC
The main advantage of trading using opposite Dow Jones and REPUBLIC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones position performs unexpectedly, REPUBLIC 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 REPUBLIC will offset losses from the drop in REPUBLIC'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 |
| REPUBLIC vs. AEP TEX INC | REPUBLIC vs. US BANK NATIONAL | REPUBLIC vs. Bank of America | REPUBLIC vs. GE Aerospace |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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