Correlation Between IBI Mutual and Dow Jones
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By analyzing existing cross correlation between IBI Mutual Funds and Dow Jones Industrial, you can compare the effects of market volatilities on IBI Mutual 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 IBI Mutual with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of IBI Mutual and Dow Jones.
Diversification Opportunities for IBI Mutual and Dow Jones
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between IBI and Dow is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding IBI Mutual Funds 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 IBI Mutual 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 IBI Mutual Funds 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 IBI Mutual i.e., IBI Mutual and Dow Jones go up and down completely randomly.
Pair Corralation between IBI Mutual and Dow Jones
Assuming the 90 days trading horizon IBI Mutual Funds is expected to generate 2.92 times more return on investment than Dow Jones. However, IBI Mutual is 2.92 times more volatile than Dow Jones Industrial. It trades about 0.1 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.15 per unit of risk. If you would invest 6,780 in IBI Mutual Funds on August 29, 2024 and sell it today you would earn a total of 1,390 from holding IBI Mutual Funds or generate 20.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 74.6% |
| Values | Daily Returns |
IBI Mutual Funds vs. Dow Jones Industrial
Performance |
| Timeline |
IBI Mutual and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
IBI Mutual Funds
Pair trading matchups for IBI Mutual
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with IBI Mutual and Dow Jones
The main advantage of trading using opposite IBI Mutual and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IBI Mutual 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.| IBI Mutual vs. Nice | IBI Mutual vs. The Gold Bond | IBI Mutual vs. Bank Leumi Le Israel | IBI Mutual vs. ICL Israel Chemicals |
| 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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