Correlation Between Oscar Mitra and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Oscar Mitra 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 Oscar Mitra and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oscar Mitra Sukses and Dow Jones Industrial, you can compare the effects of market volatilities on Oscar Mitra 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 Oscar Mitra with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oscar Mitra and Dow Jones.
Diversification Opportunities for Oscar Mitra and Dow Jones
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Oscar and Dow is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Oscar Mitra Sukses 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 Oscar Mitra 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 Oscar Mitra Sukses 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 Oscar Mitra i.e., Oscar Mitra and Dow Jones go up and down completely randomly.
Pair Corralation between Oscar Mitra and Dow Jones
Assuming the 90 days trading horizon Oscar Mitra is expected to generate 1.84 times less return on investment than Dow Jones. In addition to that, Oscar Mitra is 6.5 times more volatile than Dow Jones Industrial. It trades about 0.03 of its total potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.35 per unit of volatility. If you would invest 4,179,460 in Dow Jones Industrial on September 4, 2024 and sell it today you would earn a total of 291,093 from holding Dow Jones Industrial or generate 6.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oscar Mitra Sukses vs. Dow Jones Industrial
Performance |
| Timeline |
Oscar Mitra and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Oscar Mitra Sukses
Pair trading matchups for Oscar Mitra
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Oscar Mitra and Dow Jones
The main advantage of trading using opposite Oscar Mitra and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oscar Mitra 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.| Oscar Mitra vs. Imago Mulia Persada | Oscar Mitra vs. Damai Sejahtera Abadi | Oscar Mitra vs. Nanotech Indonesia Global | Oscar Mitra vs. PT Winner Nusantara |
| Dow Jones vs. Gentex | Dow Jones vs. American Axle Manufacturing | Dow Jones vs. Pearson PLC ADR | Dow Jones vs. Marine Products |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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