Correlation Between Kilitch Drugs and Dow Jones
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By analyzing existing cross correlation between Kilitch Drugs Limited and Dow Jones Industrial, you can compare the effects of market volatilities on Kilitch Drugs 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 Kilitch Drugs with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kilitch Drugs and Dow Jones.
Diversification Opportunities for Kilitch Drugs and Dow Jones
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kilitch and Dow is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Kilitch Drugs Limited 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 Kilitch Drugs 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 Kilitch Drugs Limited 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 Kilitch Drugs i.e., Kilitch Drugs and Dow Jones go up and down completely randomly.
Pair Corralation between Kilitch Drugs and Dow Jones
Assuming the 90 days trading horizon Kilitch Drugs is expected to generate 11.46 times less return on investment than Dow Jones. In addition to that, Kilitch Drugs is 3.3 times more volatile than Dow Jones Industrial. It trades about 0.01 of its total potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.21 per unit of volatility. If you would invest 4,237,436 in Dow Jones Industrial on August 25, 2024 and sell it today you would earn a total of 192,215 from holding Dow Jones Industrial or generate 4.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Kilitch Drugs Limited vs. Dow Jones Industrial
Performance |
| Timeline |
Kilitch Drugs and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Kilitch Drugs Limited
Pair trading matchups for Kilitch Drugs
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Kilitch Drugs and Dow Jones
The main advantage of trading using opposite Kilitch Drugs and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kilitch Drugs 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.| Kilitch Drugs vs. Kingfa Science Technology | Kilitch Drugs vs. Rico Auto Industries | Kilitch Drugs vs. GACM Technologies Limited | Kilitch Drugs vs. COSMO FIRST LIMITED |
| 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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