Correlation Between Dow Jones and Wismilak Inti
Can any of the company-specific risk be diversified away by investing in both Dow Jones and Wismilak Inti at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Dow Jones and Wismilak Inti into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dow Jones Industrial and Wismilak Inti Makmur, you can compare the effects of market volatilities on Dow Jones and Wismilak Inti 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 Wismilak Inti. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and Wismilak Inti.
Diversification Opportunities for Dow Jones and Wismilak Inti
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Dow and Wismilak is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial and Wismilak Inti Makmur in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wismilak Inti Makmur 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 Wismilak Inti. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wismilak Inti Makmur has no effect on the direction of Dow Jones i.e., Dow Jones and Wismilak Inti go up and down completely randomly.
Pair Corralation between Dow Jones and Wismilak Inti
Assuming the 90 days trading horizon Dow Jones Industrial is expected to generate 0.19 times more return on investment than Wismilak Inti. However, Dow Jones Industrial is 5.32 times less risky than Wismilak Inti. It trades about 0.12 of its potential returns per unit of risk. Wismilak Inti Makmur is currently generating about -0.01 per unit of risk. If you would invest 3,383,361 in Dow Jones Industrial on August 31, 2024 and sell it today you would earn a total of 1,107,704 from holding Dow Jones Industrial or generate 32.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Dow Jones Industrial vs. Wismilak Inti Makmur
Performance |
| Timeline |
Dow Jones and Wismilak Inti Volatility Contrast
Predicted Return Density |
| Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
Wismilak Inti Makmur
Pair trading matchups for Wismilak Inti
Pair Trading with Dow Jones and Wismilak Inti
The main advantage of trading using opposite Dow Jones and Wismilak Inti positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones position performs unexpectedly, Wismilak Inti 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 Wismilak Inti will offset losses from the drop in Wismilak Inti'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 |
| Wismilak Inti vs. Bekasi Fajar Industrial | Wismilak Inti vs. Erajaya Swasembada Tbk | Wismilak Inti vs. Semen Baturaja Persero | Wismilak Inti vs. Ultra Jaya Milk |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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