Correlation Between NuCana PLC and Dow Jones
Can any of the company-specific risk be diversified away by investing in both NuCana PLC 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 NuCana PLC and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NuCana PLC and Dow Jones Industrial, you can compare the effects of market volatilities on NuCana PLC 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 NuCana PLC with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of NuCana PLC and Dow Jones.
Diversification Opportunities for NuCana PLC and Dow Jones
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between NuCana and Dow is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding NuCana PLC 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 NuCana PLC 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 NuCana PLC 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 NuCana PLC i.e., NuCana PLC and Dow Jones go up and down completely randomly.
Pair Corralation between NuCana PLC and Dow Jones
Given the investment horizon of 90 days NuCana PLC is expected to under-perform the Dow Jones. In addition to that, NuCana PLC is 5.85 times more volatile than Dow Jones Industrial. It trades about -0.21 of its total potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.42 per unit of volatility. 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 | 100.0% |
| Values | Daily Returns |
NuCana PLC vs. Dow Jones Industrial
Performance |
| Timeline |
NuCana PLC and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
NuCana PLC
Pair trading matchups for NuCana PLC
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with NuCana PLC and Dow Jones
The main advantage of trading using opposite NuCana PLC and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NuCana PLC 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.| NuCana PLC vs. Zura Bio Limited | NuCana PLC vs. ZyVersa Therapeutics | NuCana PLC vs. Cidara Therapeutics | NuCana PLC vs. Silence Therapeutics PLC |
| 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |