Correlation Between HIAG Immobilien and Dow Jones
Can any of the company-specific risk be diversified away by investing in both HIAG Immobilien 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 HIAG Immobilien and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HIAG Immobilien Holding and Dow Jones Industrial, you can compare the effects of market volatilities on HIAG Immobilien 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 HIAG Immobilien with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of HIAG Immobilien and Dow Jones.
Diversification Opportunities for HIAG Immobilien and Dow Jones
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between HIAG and Dow is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding HIAG Immobilien Holding 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 HIAG Immobilien 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 HIAG Immobilien Holding 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 HIAG Immobilien i.e., HIAG Immobilien and Dow Jones go up and down completely randomly.
Pair Corralation between HIAG Immobilien and Dow Jones
Assuming the 90 days trading horizon HIAG Immobilien is expected to generate 10.46 times less return on investment than Dow Jones. But when comparing it to its historical volatility, HIAG Immobilien Holding is 1.53 times less risky than Dow Jones. It trades about 0.04 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 4,238,757 in Dow Jones Industrial on August 29, 2024 and sell it today you would earn a total of 247,274 from holding Dow Jones Industrial or generate 5.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
HIAG Immobilien Holding vs. Dow Jones Industrial
Performance |
| Timeline |
HIAG Immobilien and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
HIAG Immobilien Holding
Pair trading matchups for HIAG Immobilien
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with HIAG Immobilien and Dow Jones
The main advantage of trading using opposite HIAG Immobilien and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HIAG Immobilien 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.| HIAG Immobilien vs. Allreal Holding | HIAG Immobilien vs. Mobimo Hldg | HIAG Immobilien vs. Swiss Prime Site | HIAG Immobilien vs. PSP Swiss Property |
| 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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