Correlation Between Marks Spencer and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Marks Spencer 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 Marks Spencer and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Marks Spencer Group and Dow Jones Industrial, you can compare the effects of market volatilities on Marks Spencer 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 Marks Spencer with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marks Spencer and Dow Jones.
Diversification Opportunities for Marks Spencer and Dow Jones
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Marks and Dow is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Marks Spencer Group 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 Marks Spencer 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 Marks Spencer Group 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 Marks Spencer i.e., Marks Spencer and Dow Jones go up and down completely randomly.
Pair Corralation between Marks Spencer and Dow Jones
Assuming the 90 days horizon Marks Spencer Group is expected to generate 2.6 times more return on investment than Dow Jones. However, Marks Spencer is 2.6 times more volatile than Dow Jones Industrial. It trades about 0.13 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.08 per unit of risk. If you would invest 305.00 in Marks Spencer Group on August 28, 2024 and sell it today you would earn a total of 652.00 from holding Marks Spencer Group or generate 213.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Marks Spencer Group vs. Dow Jones Industrial
Performance |
| Timeline |
Marks Spencer and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Marks Spencer Group
Pair trading matchups for Marks Spencer
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Marks Spencer and Dow Jones
The main advantage of trading using opposite Marks Spencer and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marks Spencer 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.| Marks Spencer vs. Kohls Corp | Marks Spencer vs. Nordstrom | Marks Spencer vs. Macys Inc | Marks Spencer vs. Dillards |
| Dow Jones vs. Meiwu Technology Co | Dow Jones vs. 17 Education Technology | Dow Jones vs. 51Talk Online Education | Dow Jones vs. Afya |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| CEOs Directory Screen CEOs from public companies around the world |