Correlation Between IBEX Total and Dow Jones
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By analyzing existing cross correlation between IBEX Total Return and Dow Jones Industrial, you can compare the effects of market volatilities on IBEX Total 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 IBEX Total with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of IBEX Total and Dow Jones.
Diversification Opportunities for IBEX Total and Dow Jones
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between IBEX and Dow is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding IBEX Total Return 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 IBEX Total 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 IBEX Total Return 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 IBEX Total i.e., IBEX Total and Dow Jones go up and down completely randomly.
Pair Corralation between IBEX Total and Dow Jones
Assuming the 90 days trading horizon IBEX Total Return is expected to generate 0.88 times more return on investment than Dow Jones. However, IBEX Total Return is 1.14 times less risky than Dow Jones. It trades about 0.09 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about -0.21 per unit of risk. If you would invest 4,106,800 in IBEX Total Return on October 12, 2024 and sell it today you would earn a total of 47,420 from holding IBEX Total Return or generate 1.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
IBEX Total Return vs. Dow Jones Industrial
Performance |
| Timeline |
IBEX Total and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
IBEX Total Return
Pair trading matchups for IBEX Total
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with IBEX Total and Dow Jones
The main advantage of trading using opposite IBEX Total and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IBEX Total 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.| IBEX Total vs. Vytrus Biotech SA | IBEX Total vs. Arrienda Rental Properties | IBEX Total vs. Cellnex Telecom SA | IBEX Total vs. Bankinter |
| Dow Jones vs. Toro | Dow Jones vs. Foot Locker | Dow Jones vs. Abercrombie Fitch | Dow Jones vs. 51Talk Online Education |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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