Correlation Between EUDA Health and Dow Jones
Can any of the company-specific risk be diversified away by investing in both EUDA Health 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 EUDA Health and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EUDA Health Holdings and Dow Jones Industrial, you can compare the effects of market volatilities on EUDA Health 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 EUDA Health with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of EUDA Health and Dow Jones.
Diversification Opportunities for EUDA Health and Dow Jones
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between EUDA and Dow is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding EUDA Health Holdings 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 EUDA Health 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 EUDA Health Holdings 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 EUDA Health i.e., EUDA Health and Dow Jones go up and down completely randomly.
Pair Corralation between EUDA Health and Dow Jones
Given the investment horizon of 90 days EUDA Health Holdings is expected to generate 9.99 times more return on investment than Dow Jones. However, EUDA Health is 9.99 times more volatile than Dow Jones Industrial. It trades about 0.13 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.1 per unit of risk. If you would invest 55.00 in EUDA Health Holdings on August 26, 2024 and sell it today you would earn a total of 398.00 from holding EUDA Health Holdings or generate 723.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
EUDA Health Holdings vs. Dow Jones Industrial
Performance |
| Timeline |
EUDA Health and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
EUDA Health Holdings
Pair trading matchups for EUDA Health
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with EUDA Health and Dow Jones
The main advantage of trading using opposite EUDA Health and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EUDA Health 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.| EUDA Health vs. Healthcare Triangle | EUDA Health vs. Bullfrog AI Holdings, | EUDA Health vs. Mangoceuticals, Common Stock | EUDA Health vs. FOXO Technologies |
| Dow Jones vs. Vistra Energy Corp | Dow Jones vs. Fluence Energy | Dow Jones vs. Old Republic International | Dow Jones vs. Empresa Distribuidora y |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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