Correlation Between Exemplar Growth and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Exemplar Growth and Dow Jones 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 Exemplar Growth and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Exemplar Growth and and Dow Jones Industrial, you can compare the effects of market volatilities on Exemplar Growth and Dow Jones 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 Exemplar Growth with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exemplar Growth and Dow Jones.
Diversification Opportunities for Exemplar Growth and Dow Jones
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Exemplar and Dow is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Exemplar Growth and and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial and Exemplar Growth 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 Exemplar Growth and are associated (or correlated) with Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of Exemplar Growth i.e., Exemplar Growth and Dow Jones go up and down completely randomly.
Pair Corralation between Exemplar Growth and Dow Jones
Assuming the 90 days trading horizon Exemplar Growth is expected to generate 1.44 times less return on investment than Dow Jones. But when comparing it to its historical volatility, Exemplar Growth and is 2.04 times less risky than Dow Jones. It trades about 0.18 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 3,515,104 in Dow Jones Industrial on September 14, 2024 and sell it today you would earn a total of 876,308 from holding Dow Jones Industrial or generate 24.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.26% |
| Values | Daily Returns |
Exemplar Growth and vs. Dow Jones Industrial
Performance |
| Timeline |
Exemplar Growth and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Exemplar Growth and
Pair trading matchups for Exemplar Growth
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Exemplar Growth and Dow Jones
The main advantage of trading using opposite Exemplar Growth and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Exemplar Growth position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.| Exemplar Growth vs. Purpose International Dividend | Exemplar Growth vs. Purpose Premium Yield | Exemplar Growth vs. Purpose Monthly Income | Exemplar Growth vs. Purpose Total Return |
| Dow Jones vs. Hurco Companies | Dow Jones vs. Tyson Foods | Dow Jones vs. MYR Group | Dow Jones vs. Cannae Holdings |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |