Correlation Between Minor International and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Minor International 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 Minor International and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Minor International PCL and Dow Jones Industrial, you can compare the effects of market volatilities on Minor International 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 Minor International with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Minor International and Dow Jones.
Diversification Opportunities for Minor International and Dow Jones
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Minor and Dow is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Minor International PCL 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 Minor International 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 Minor International PCL 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 Minor International i.e., Minor International and Dow Jones go up and down completely randomly.
Pair Corralation between Minor International and Dow Jones
If you would invest 4,239,227 in Dow Jones Industrial on November 2, 2024 and sell it today you would earn a total of 248,986 from holding Dow Jones Industrial or generate 5.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 5.26% |
| Values | Daily Returns |
Minor International PCL vs. Dow Jones Industrial
Performance |
| Timeline |
Minor International and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Minor International PCL
Pair trading matchups for Minor International
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Minor International and Dow Jones
The main advantage of trading using opposite Minor International and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Minor International 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.| Minor International vs. Mesa Air Group | Minor International vs. Unum Group | Minor International vs. Conifer Holdings, 975 | Minor International vs. United Airlines Holdings |
| Dow Jones vs. Boston Properties | Dow Jones vs. Suntory Beverage Food | Dow Jones vs. Envista Holdings Corp | Dow Jones vs. Fevertree Drinks Plc |
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 Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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