Correlation Between Hudson United and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Hudson United 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 Hudson United and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hudson United Bancorp and Dow Jones Industrial, you can compare the effects of market volatilities on Hudson United 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 Hudson United with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hudson United and Dow Jones.
Diversification Opportunities for Hudson United and Dow Jones
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Hudson and Dow is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Hudson United Bancorp 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 Hudson United 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 Hudson United Bancorp 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 Hudson United i.e., Hudson United and Dow Jones go up and down completely randomly.
Pair Corralation between Hudson United and Dow Jones
If you would invest 3,446,369 in Dow Jones Industrial on September 12, 2024 and sell it today you would earn a total of 978,414 from holding Dow Jones Industrial or generate 28.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Hudson United Bancorp vs. Dow Jones Industrial
Performance |
| Timeline |
Hudson United and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Hudson United Bancorp
Pair trading matchups for Hudson United
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Hudson United and Dow Jones
The main advantage of trading using opposite Hudson United and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hudson United 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.| Hudson United vs. Definitive Healthcare Corp | Hudson United vs. Barrick Gold Corp | Hudson United vs. Agnico Eagle Mines | Hudson United vs. Uranium Energy Corp |
| Dow Jones vs. Aeye Inc | Dow Jones vs. Gentex | Dow Jones vs. Marine Products | Dow Jones vs. CarsalesCom Ltd ADR |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |