Correlation Between Jat Holdings and Dow Jones
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By analyzing existing cross correlation between Jat Holdings PLC and Dow Jones Industrial, you can compare the effects of market volatilities on Jat Holdings 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 Jat Holdings with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jat Holdings and Dow Jones.
Diversification Opportunities for Jat Holdings and Dow Jones
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jat and Dow is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Jat Holdings PLC 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 Jat Holdings 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 Jat Holdings PLC 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 Jat Holdings i.e., Jat Holdings and Dow Jones go up and down completely randomly.
Pair Corralation between Jat Holdings and Dow Jones
Assuming the 90 days trading horizon Jat Holdings PLC is expected to generate 2.91 times more return on investment than Dow Jones. However, Jat Holdings is 2.91 times more volatile than Dow Jones Industrial. It trades about 0.08 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.11 per unit of risk. If you would invest 1,400 in Jat Holdings PLC on August 28, 2024 and sell it today you would earn a total of 500.00 from holding Jat Holdings PLC or generate 35.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 93.3% |
| Values | Daily Returns |
Jat Holdings PLC vs. Dow Jones Industrial
Performance |
| Timeline |
Jat Holdings and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Jat Holdings PLC
Pair trading matchups for Jat Holdings
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Jat Holdings and Dow Jones
The main advantage of trading using opposite Jat Holdings and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jat Holdings 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.| Jat Holdings vs. Convenience Foods PLC | Jat Holdings vs. Pegasus Hotels of | Jat Holdings vs. Arpico Insurance | Jat Holdings vs. RENUKA FOODS PLC |
| 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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