Correlation Between Histogen and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Histogen 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 Histogen and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Histogen and Dow Jones Industrial, you can compare the effects of market volatilities on Histogen 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 Histogen with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Histogen and Dow Jones.
Diversification Opportunities for Histogen and Dow Jones
Very good diversification
The 3 months correlation between Histogen and Dow is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Histogen 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 Histogen 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 Histogen 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 Histogen i.e., Histogen and Dow Jones go up and down completely randomly.
Pair Corralation between Histogen and Dow Jones
Given the investment horizon of 90 days Histogen is expected to generate 16.67 times more return on investment than Dow Jones. However, Histogen is 16.67 times more volatile than Dow Jones Industrial. It trades about 0.01 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.08 per unit of risk. If you would invest 100.00 in Histogen on August 29, 2024 and sell it today you would lose (98.00) from holding Histogen or give up 98.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Histogen vs. Dow Jones Industrial
Performance |
| Timeline |
Histogen and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Histogen
Pair trading matchups for Histogen
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Histogen and Dow Jones
The main advantage of trading using opposite Histogen and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Histogen 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.| Histogen vs. Eliem Therapeutics | Histogen vs. Scpharmaceuticals | Histogen vs. Milestone Pharmaceuticals | Histogen vs. Seres Therapeutics |
| Dow Jones vs. CECO Environmental Corp | Dow Jones vs. Western Acquisition Ventures | Dow Jones vs. Tyson Foods | Dow Jones vs. Inflection Point Acquisition |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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