Correlation Between Jasmine International and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Jasmine International 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 Jasmine International and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jasmine International Public and Dow Jones Industrial, you can compare the effects of market volatilities on Jasmine International 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 Jasmine International with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jasmine International and Dow Jones.
Diversification Opportunities for Jasmine International and Dow Jones
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jasmine and Dow is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Jasmine International Public 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 Jasmine International 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 Jasmine International Public 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 Jasmine International i.e., Jasmine International and Dow Jones go up and down completely randomly.
Pair Corralation between Jasmine International and Dow Jones
Assuming the 90 days trading horizon Jasmine International Public is expected to under-perform the Dow Jones. In addition to that, Jasmine International is 4.04 times more volatile than Dow Jones Industrial. It trades about -0.05 of its total potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.18 per unit of volatility. If you would invest 4,109,142 in Dow Jones Industrial on August 28, 2024 and sell it today you would earn a total of 376,889 from holding Dow Jones Industrial or generate 9.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.44% |
| Values | Daily Returns |
Jasmine International Public vs. Dow Jones Industrial
Performance |
| Timeline |
Jasmine International and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Jasmine International Public
Pair trading matchups for Jasmine International
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Jasmine International and Dow Jones
The main advantage of trading using opposite Jasmine International and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jasmine International 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.| Jasmine International vs. Indara Insurance Public | Jasmine International vs. Regional Container Lines | Jasmine International vs. Regional Container Lines | Jasmine International vs. Mahachai Hospital Public |
| 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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