Correlation Between Fino Payments and Dow Jones
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By analyzing existing cross correlation between Fino Payments Bank and Dow Jones Industrial, you can compare the effects of market volatilities on Fino Payments 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 Fino Payments with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fino Payments and Dow Jones.
Diversification Opportunities for Fino Payments and Dow Jones
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Fino and Dow is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Fino Payments Bank 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 Fino Payments 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 Fino Payments Bank 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 Fino Payments i.e., Fino Payments and Dow Jones go up and down completely randomly.
Pair Corralation between Fino Payments and Dow Jones
Assuming the 90 days trading horizon Fino Payments Bank is expected to generate 4.48 times more return on investment than Dow Jones. However, Fino Payments is 4.48 times more volatile than Dow Jones Industrial. It trades about 0.1 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.16 per unit of risk. If you would invest 25,740 in Fino Payments Bank on September 3, 2024 and sell it today you would earn a total of 11,290 from holding Fino Payments Bank or generate 43.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.2% |
| Values | Daily Returns |
Fino Payments Bank vs. Dow Jones Industrial
Performance |
| Timeline |
Fino Payments and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Fino Payments Bank
Pair trading matchups for Fino Payments
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Fino Payments and Dow Jones
The main advantage of trading using opposite Fino Payments and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fino Payments 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.| Fino Payments vs. Reliance Industries Limited | Fino Payments vs. Shipping | Fino Payments vs. Indo Borax Chemicals | Fino Payments vs. Kingfa Science Technology |
| Dow Jones vs. Eastern Co | Dow Jones vs. Uber Technologies | Dow Jones vs. AKITA Drilling | Dow Jones vs. Chemours Co |
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.
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