Correlation Between KENYA RE and Dow Jones
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By analyzing existing cross correlation between KENYA RE INSURANCE PORATION and Dow Jones Industrial, you can compare the effects of market volatilities on KENYA RE 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 KENYA RE with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of KENYA RE and Dow Jones.
Diversification Opportunities for KENYA RE and Dow Jones
Good diversification
The 3 months correlation between KENYA and Dow is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding KENYA RE INSURANCE PORATION 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 KENYA RE 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 KENYA RE INSURANCE PORATION 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 KENYA RE i.e., KENYA RE and Dow Jones go up and down completely randomly.
Pair Corralation between KENYA RE and Dow Jones
Assuming the 90 days trading horizon KENYA RE INSURANCE PORATION is expected to under-perform the Dow Jones. In addition to that, KENYA RE is 5.3 times more volatile than Dow Jones Industrial. It trades about -0.02 of its total potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.12 per unit of volatility. If you would invest 3,383,361 in Dow Jones Industrial on August 31, 2024 and sell it today you would earn a total of 1,107,704 from holding Dow Jones Industrial or generate 32.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.66% |
| Values | Daily Returns |
KENYA RE INSURANCE PORATION vs. Dow Jones Industrial
Performance |
| Timeline |
KENYA RE and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
KENYA RE INSURANCE PORATION
Pair trading matchups for KENYA RE
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with KENYA RE and Dow Jones
The main advantage of trading using opposite KENYA RE and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KENYA RE 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.| KENYA RE vs. ABSA BANK OF | KENYA RE vs. BRITISH AMERICAN TOBACCO | KENYA RE vs. CO OPERATIVE BANK OF | KENYA RE vs. ABSA NEW GOLD |
| Dow Jones vs. Aerofoam Metals | Dow Jones vs. ACG Metals Limited | Dow Jones vs. China Clean Energy | Dow Jones vs. Fast Retailing Co |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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