Correlation Between Marketfield Fund and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Marketfield Fund 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 Marketfield Fund and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Marketfield Fund Marketfield and Dow Jones Industrial, you can compare the effects of market volatilities on Marketfield Fund 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 Marketfield Fund with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marketfield Fund and Dow Jones.
Diversification Opportunities for Marketfield Fund and Dow Jones
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Marketfield and Dow is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Marketfield Fund Marketfield 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 Marketfield Fund 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 Marketfield Fund Marketfield 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 Marketfield Fund i.e., Marketfield Fund and Dow Jones go up and down completely randomly.
Pair Corralation between Marketfield Fund and Dow Jones
Assuming the 90 days horizon Marketfield Fund Marketfield is expected to generate 0.92 times more return on investment than Dow Jones. However, Marketfield Fund Marketfield is 1.09 times less risky than Dow Jones. It trades about -0.17 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about -0.2 per unit of risk. If you would invest 2,266 in Marketfield Fund Marketfield on January 22, 2025 and sell it today you would lose (190.00) from holding Marketfield Fund Marketfield or give up 8.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Marketfield Fund Marketfield vs. Dow Jones Industrial
Performance |
| Timeline |
Marketfield Fund and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Marketfield Fund Marketfield
Pair trading matchups for Marketfield Fund
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Marketfield Fund and Dow Jones
The main advantage of trading using opposite Marketfield Fund and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marketfield Fund 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.| Marketfield Fund vs. Advent Claymore Convertible | Marketfield Fund vs. Rationalpier 88 Convertible | Marketfield Fund vs. Columbia Convertible Securities | Marketfield Fund vs. Lord Abbett Convertible |
| Dow Jones vs. Envista Holdings Corp | Dow Jones vs. ARIA Wireless Systems | Dow Jones vs. JBG SMITH Properties | Dow Jones vs. PACCAR Inc |
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
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |