Correlation Between Financiera Confianza and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Financiera Confianza 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 Financiera Confianza and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Financiera Confianza SAA and Dow Jones Industrial, you can compare the effects of market volatilities on Financiera Confianza 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 Financiera Confianza with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Financiera Confianza and Dow Jones.
Diversification Opportunities for Financiera Confianza and Dow Jones
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Financiera and Dow is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Financiera Confianza SAA 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 Financiera Confianza 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 Financiera Confianza SAA 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 Financiera Confianza i.e., Financiera Confianza and Dow Jones go up and down completely randomly.
Pair Corralation between Financiera Confianza and Dow Jones
If you would invest 3,522,518 in Dow Jones Industrial on September 12, 2024 and sell it today you would earn a total of 902,265 from holding Dow Jones Industrial or generate 25.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Financiera Confianza SAA vs. Dow Jones Industrial
Performance |
| Timeline |
Financiera Confianza and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Financiera Confianza SAA
Pair trading matchups for Financiera Confianza
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Financiera Confianza and Dow Jones
The main advantage of trading using opposite Financiera Confianza and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Financiera Confianza 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.| Financiera Confianza vs. Southern Copper Corp | Financiera Confianza vs. Banco de Credito | Financiera Confianza vs. InRetail Peru Corp |
| Dow Jones vs. Aeye Inc | Dow Jones vs. Gentex | Dow Jones vs. Marine Products | Dow Jones vs. CarsalesCom Ltd ADR |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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