Correlation Between Footway Group and Dow Jones
Specify exactly 2 symbols:
By analyzing existing cross correlation between Footway Group AB and Dow Jones Industrial, you can compare the effects of market volatilities on Footway Group 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 Footway Group with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Footway Group and Dow Jones.
Diversification Opportunities for Footway Group and Dow Jones
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Footway and Dow is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Footway Group AB 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 Footway Group 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 Footway Group AB 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 Footway Group i.e., Footway Group and Dow Jones go up and down completely randomly.
Pair Corralation between Footway Group and Dow Jones
Assuming the 90 days trading horizon Footway Group AB is expected to under-perform the Dow Jones. In addition to that, Footway Group is 6.68 times more volatile than Dow Jones Industrial. It trades about -0.02 of its total potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.15 per unit of volatility. If you would invest 3,868,632 in Dow Jones Industrial on August 29, 2024 and sell it today you would earn a total of 603,574 from holding Dow Jones Industrial or generate 15.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.21% |
| Values | Daily Returns |
Footway Group AB vs. Dow Jones Industrial
Performance |
| Timeline |
Footway Group and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Footway Group AB
Pair trading matchups for Footway Group
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Footway Group and Dow Jones
The main advantage of trading using opposite Footway Group and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Footway Group 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.| Footway Group vs. SolTech Energy Sweden | Footway Group vs. Lohilo Foods AB | Footway Group vs. Sdiptech AB | Footway Group vs. Upsales Technology AB |
| Dow Jones vs. Kaltura | Dow Jones vs. Artisan Partners Asset | Dow Jones vs. US Global Investors | Dow Jones vs. Analog Devices |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |