Correlation Between K Fast and Dow Jones
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By analyzing existing cross correlation between K Fast Holding AB and Dow Jones Industrial, you can compare the effects of market volatilities on K Fast 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 K Fast with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of K Fast and Dow Jones.
Diversification Opportunities for K Fast and Dow Jones
Excellent diversification
The 3 months correlation between KFAST-B and Dow is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding K Fast Holding AB 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 K Fast 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 K Fast Holding AB 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 K Fast i.e., K Fast and Dow Jones go up and down completely randomly.
Pair Corralation between K Fast and Dow Jones
Assuming the 90 days trading horizon K Fast Holding AB is expected to under-perform the Dow Jones. In addition to that, K Fast is 2.42 times more volatile than Dow Jones Industrial. It trades about -0.17 of its total potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.34 per unit of volatility. If you would invest 4,205,219 in Dow Jones Industrial on September 2, 2024 and sell it today you would earn a total of 285,846 from holding Dow Jones Industrial or generate 6.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
K Fast Holding AB vs. Dow Jones Industrial
Performance |
| Timeline |
K Fast and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
K Fast Holding AB
Pair trading matchups for K Fast
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with K Fast and Dow Jones
The main advantage of trading using opposite K Fast and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if K Fast 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.| K Fast vs. Fastighets AB Balder | K Fast vs. Fabege AB | K Fast vs. Wihlborgs Fastigheter AB | K Fast vs. Castellum AB |
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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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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