Correlation Between MAY BAKER and Dow Jones
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By analyzing existing cross correlation between MAY BAKER NIGERIA and Dow Jones Industrial, you can compare the effects of market volatilities on MAY BAKER 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 MAY BAKER with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of MAY BAKER and Dow Jones.
Diversification Opportunities for MAY BAKER and Dow Jones
Very good diversification
The 3 months correlation between MAY and Dow is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding MAY BAKER NIGERIA 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 MAY BAKER 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 MAY BAKER NIGERIA 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 MAY BAKER i.e., MAY BAKER and Dow Jones go up and down completely randomly.
Pair Corralation between MAY BAKER and Dow Jones
Assuming the 90 days trading horizon MAY BAKER NIGERIA is expected to generate 2.91 times more return on investment than Dow Jones. However, MAY BAKER is 2.91 times more volatile than Dow Jones Industrial. It trades about 0.14 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.1 per unit of risk. If you would invest 745.00 in MAY BAKER NIGERIA on October 26, 2024 and sell it today you would earn a total of 155.00 from holding MAY BAKER NIGERIA or generate 20.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.36% |
| Values | Daily Returns |
MAY BAKER NIGERIA vs. Dow Jones Industrial
Performance |
| Timeline |
MAY BAKER and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
MAY BAKER NIGERIA
Pair trading matchups for MAY BAKER
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with MAY BAKER and Dow Jones
The main advantage of trading using opposite MAY BAKER and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MAY BAKER 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.| MAY BAKER vs. FIDELITY BANK PLC | MAY BAKER vs. ECOBANK TRANSNATIONAL INCORPORATED | MAY BAKER vs. MULTI TREX INTEGRATED FOODS | MAY BAKER vs. LIVINGTRUST MORTGAGE BANK |
| Dow Jones vs. Asure Software | Dow Jones vs. Amkor Technology | Dow Jones vs. Radcom | Dow Jones vs. Senmiao Technology |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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