Correlation Between F45 Training and Dow Jones
Can any of the company-specific risk be diversified away by investing in both F45 Training 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 F45 Training and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between F45 Training Holdings and Dow Jones Industrial, you can compare the effects of market volatilities on F45 Training 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 F45 Training with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of F45 Training and Dow Jones.
Diversification Opportunities for F45 Training and Dow Jones
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between F45 and Dow is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding F45 Training 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 F45 Training 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 F45 Training 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 F45 Training i.e., F45 Training and Dow Jones go up and down completely randomly.
Pair Corralation between F45 Training and Dow Jones
If you would invest 3,885,286 in Dow Jones Industrial on August 25, 2024 and sell it today you would earn a total of 544,365 from holding Dow Jones Industrial or generate 14.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 0.79% |
| Values | Daily Returns |
F45 Training Holdings vs. Dow Jones Industrial
Performance |
| Timeline |
F45 Training and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
F45 Training Holdings
Pair trading matchups for F45 Training
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with F45 Training and Dow Jones
The main advantage of trading using opposite F45 Training and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if F45 Training 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.| F45 Training vs. Life Time Group | F45 Training vs. Bowlero Corp | F45 Training vs. Planet Fitness | F45 Training vs. JAKKS Pacific |
| 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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