Correlation Between Multi Ways and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Multi Ways 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 Multi Ways and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Multi Ways Holdings and Dow Jones Industrial, you can compare the effects of market volatilities on Multi Ways 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 Multi Ways with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Multi Ways and Dow Jones.
Diversification Opportunities for Multi Ways and Dow Jones
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Multi and Dow is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Multi Ways Holdings 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 Multi Ways 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 Multi Ways Holdings 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 Multi Ways i.e., Multi Ways and Dow Jones go up and down completely randomly.
Pair Corralation between Multi Ways and Dow Jones
Considering the 90-day investment horizon Multi Ways Holdings is expected to generate 6.02 times more return on investment than Dow Jones. However, Multi Ways is 6.02 times more volatile than Dow Jones Industrial. It trades about 0.08 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.06 per unit of risk. If you would invest 24.00 in Multi Ways Holdings on November 18, 2024 and sell it today you would earn a total of 4.00 from holding Multi Ways Holdings or generate 16.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.39% |
| Values | Daily Returns |
Multi Ways Holdings vs. Dow Jones Industrial
Performance |
| Timeline |
Multi Ways and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Multi Ways Holdings
Pair trading matchups for Multi Ways
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Multi Ways and Dow Jones
The main advantage of trading using opposite Multi Ways and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Multi Ways 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.| Multi Ways vs. FlexShopper | Multi Ways vs. Hertz Global Holdings | Multi Ways vs. HyreCar | Multi Ways vs. Avis Budget Group |
| Dow Jones vs. Palomar Holdings | Dow Jones vs. Mesa Air Group | Dow Jones vs. LATAM Airlines Group | Dow Jones vs. Unum Group |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |