Correlation Between Kentucky First and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Kentucky First 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 Kentucky First and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kentucky First Federal and Dow Jones Industrial, you can compare the effects of market volatilities on Kentucky First 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 Kentucky First with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kentucky First and Dow Jones.
Diversification Opportunities for Kentucky First and Dow Jones
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kentucky and Dow is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Kentucky First Federal 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 Kentucky First 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 Kentucky First Federal 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 Kentucky First i.e., Kentucky First and Dow Jones go up and down completely randomly.
Pair Corralation between Kentucky First and Dow Jones
Given the investment horizon of 90 days Kentucky First Federal is expected to under-perform the Dow Jones. In addition to that, Kentucky First is 4.41 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 0.11 per unit of volatility. If you would invest 3,312,774 in Dow Jones Industrial on August 26, 2024 and sell it today you would earn a total of 1,116,877 from holding Dow Jones Industrial or generate 33.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.24% |
| Values | Daily Returns |
Kentucky First Federal vs. Dow Jones Industrial
Performance |
| Timeline |
Kentucky First and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Kentucky First Federal
Pair trading matchups for Kentucky First
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Kentucky First and Dow Jones
The main advantage of trading using opposite Kentucky First and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kentucky First 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.| Kentucky First vs. Home Federal Bancorp | Kentucky First vs. Lake Shore Bancorp | Kentucky First vs. Commerzbank AG | Kentucky First vs. Investar Holding Corp |
| Dow Jones vs. Vistra Energy Corp | Dow Jones vs. Fluence Energy | Dow Jones vs. Old Republic International | Dow Jones vs. Empresa Distribuidora y |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |