Correlation Between ACTEOS SA and Dow Jones
Can any of the company-specific risk be diversified away by investing in both ACTEOS SA 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 ACTEOS SA and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ACTEOS SA and Dow Jones Industrial, you can compare the effects of market volatilities on ACTEOS SA 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 ACTEOS SA with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of ACTEOS SA and Dow Jones.
Diversification Opportunities for ACTEOS SA and Dow Jones
Pay attention - limited upside
The 3 months correlation between ACTEOS and Dow is -0.88. Overlapping area represents the amount of risk that can be diversified away by holding ACTEOS SA 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 ACTEOS SA 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 ACTEOS SA 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 ACTEOS SA i.e., ACTEOS SA and Dow Jones go up and down completely randomly.
Pair Corralation between ACTEOS SA and Dow Jones
Assuming the 90 days trading horizon ACTEOS SA is expected to under-perform the Dow Jones. In addition to that, ACTEOS SA is 2.87 times more volatile than Dow Jones Industrial. It trades about -0.23 of its total potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.27 per unit of volatility. If you would invest 4,223,305 in Dow Jones Industrial on August 30, 2024 and sell it today you would earn a total of 248,901 from holding Dow Jones Industrial or generate 5.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ACTEOS SA vs. Dow Jones Industrial
Performance |
| Timeline |
ACTEOS SA and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
ACTEOS SA
Pair trading matchups for ACTEOS SA
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with ACTEOS SA and Dow Jones
The main advantage of trading using opposite ACTEOS SA and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ACTEOS SA 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.| ACTEOS SA vs. Thales SA | ACTEOS SA vs. Safran SA | ACTEOS SA vs. Air Liquide SA | ACTEOS SA vs. Capgemini SE |
| Dow Jones vs. Skillful Craftsman Education | Dow Jones vs. Acco Brands | Dow Jones vs. Cracker Barrel Old | Dow Jones vs. Coursera |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |