Correlation Between NewWave Silver and Dow Jones
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By analyzing existing cross correlation between NewWave Silver Exchange and Dow Jones Industrial, you can compare the effects of market volatilities on NewWave Silver 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 NewWave Silver with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of NewWave Silver and Dow Jones.
Diversification Opportunities for NewWave Silver and Dow Jones
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between NewWave and Dow is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding NewWave Silver Exchange 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 NewWave Silver 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 NewWave Silver Exchange 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 NewWave Silver i.e., NewWave Silver and Dow Jones go up and down completely randomly.
Pair Corralation between NewWave Silver and Dow Jones
Assuming the 90 days trading horizon NewWave Silver Exchange is expected to generate 2.14 times more return on investment than Dow Jones. However, NewWave Silver is 2.14 times more volatile than Dow Jones Industrial. It trades about 0.05 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.08 per unit of risk. If you would invest 38,100 in NewWave Silver Exchange on August 30, 2024 and sell it today you would earn a total of 14,400 from holding NewWave Silver Exchange or generate 37.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.99% |
| Values | Daily Returns |
NewWave Silver Exchange vs. Dow Jones Industrial
Performance |
| Timeline |
NewWave Silver and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
NewWave Silver Exchange
Pair trading matchups for NewWave Silver
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with NewWave Silver and Dow Jones
The main advantage of trading using opposite NewWave Silver and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NewWave Silver 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.| NewWave Silver vs. Sasol Ltd Bee | NewWave Silver vs. Centaur Bci Balanced | NewWave Silver vs. Sabvest Capital | NewWave Silver vs. Growthpoint Properties |
| Dow Jones vs. Kaltura | Dow Jones vs. Artisan Partners Asset | Dow Jones vs. US Global Investors | Dow Jones vs. Analog Devices |
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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