Correlation Between Eagle Bulk and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Eagle Bulk 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 Eagle Bulk and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eagle Bulk Shipping and Dow Jones Industrial, you can compare the effects of market volatilities on Eagle Bulk 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 Eagle Bulk with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eagle Bulk and Dow Jones.
Diversification Opportunities for Eagle Bulk and Dow Jones
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Eagle and Dow is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Eagle Bulk Shipping 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 Eagle Bulk 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 Eagle Bulk Shipping 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 Eagle Bulk i.e., Eagle Bulk and Dow Jones go up and down completely randomly.
Pair Corralation between Eagle Bulk and Dow Jones
If you would invest 4,238,757 in Dow Jones Industrial on August 28, 2024 and sell it today you would earn a total of 234,900 from holding Dow Jones Industrial or generate 5.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Eagle Bulk Shipping vs. Dow Jones Industrial
Performance |
| Timeline |
Eagle Bulk and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Eagle Bulk Shipping
Pair trading matchups for Eagle Bulk
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Eagle Bulk and Dow Jones
The main advantage of trading using opposite Eagle Bulk and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eagle Bulk 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.| Eagle Bulk vs. Star Bulk Carriers | Eagle Bulk vs. Golden Ocean Group | Eagle Bulk vs. Global Ship Lease | Eagle Bulk vs. Diana Shipping |
| Dow Jones vs. Meiwu Technology Co | Dow Jones vs. 17 Education Technology | Dow Jones vs. 51Talk Online Education | Dow Jones vs. Afya |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
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| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
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| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |