Correlation Between FNB ETN and Dow Jones
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By analyzing existing cross correlation between FNB ETN on and Dow Jones Industrial, you can compare the effects of market volatilities on FNB ETN 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 FNB ETN with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of FNB ETN and Dow Jones.
Diversification Opportunities for FNB ETN and Dow Jones
Poor diversification
The 3 months correlation between FNB and Dow is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding FNB ETN on 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 FNB ETN 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 FNB ETN on 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 FNB ETN i.e., FNB ETN and Dow Jones go up and down completely randomly.
Pair Corralation between FNB ETN and Dow Jones
Assuming the 90 days trading horizon FNB ETN on is expected to generate 2.84 times more return on investment than Dow Jones. However, FNB ETN is 2.84 times more volatile than Dow Jones Industrial. It trades about 0.17 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.13 per unit of risk. If you would invest 87,100 in FNB ETN on on September 2, 2024 and sell it today you would earn a total of 83,700 from holding FNB ETN on or generate 96.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 87.5% |
| Values | Daily Returns |
FNB ETN on vs. Dow Jones Industrial
Performance |
| Timeline |
FNB ETN and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
FNB ETN on
Pair trading matchups for FNB ETN
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with FNB ETN and Dow Jones
The main advantage of trading using opposite FNB ETN and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FNB ETN 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.| FNB ETN vs. Europa Metals | FNB ETN vs. JSE Limited | FNB ETN vs. British American Tobacco | FNB ETN vs. Kap Industrial Holdings |
| Dow Jones vs. Dream Finders Homes | Dow Jones vs. GEN Restaurant Group, | Dow Jones vs. National Beverage Corp | Dow Jones vs. BJs Restaurants |
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 Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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