Correlation Between PEH WERTPAPIER and Dow Jones
Can any of the company-specific risk be diversified away by investing in both PEH WERTPAPIER 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 PEH WERTPAPIER and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PEH WERTPAPIER and Dow Jones Industrial, you can compare the effects of market volatilities on PEH WERTPAPIER 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 PEH WERTPAPIER with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of PEH WERTPAPIER and Dow Jones.
Diversification Opportunities for PEH WERTPAPIER and Dow Jones
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between PEH and Dow is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding PEH WERTPAPIER 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 PEH WERTPAPIER 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 PEH WERTPAPIER 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 PEH WERTPAPIER i.e., PEH WERTPAPIER and Dow Jones go up and down completely randomly.
Pair Corralation between PEH WERTPAPIER and Dow Jones
Assuming the 90 days trading horizon PEH WERTPAPIER is expected to under-perform the Dow Jones. But the stock apears to be less risky and, when comparing its historical volatility, PEH WERTPAPIER is 1.16 times less risky than Dow Jones. The stock trades about -0.2 of its potential returns per unit of risk. The Dow Jones Industrial is currently generating about 0.34 of returns per unit of risk over similar time horizon. If you would invest 4,205,219 in Dow Jones Industrial on September 2, 2024 and sell it today you would earn a total of 285,846 from holding Dow Jones Industrial or generate 6.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
PEH WERTPAPIER vs. Dow Jones Industrial
Performance |
| Timeline |
PEH WERTPAPIER and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
PEH WERTPAPIER
Pair trading matchups for PEH WERTPAPIER
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with PEH WERTPAPIER and Dow Jones
The main advantage of trading using opposite PEH WERTPAPIER and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PEH WERTPAPIER 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.| PEH WERTPAPIER vs. SCIENCE IN SPORT | PEH WERTPAPIER vs. NTG Nordic Transport | PEH WERTPAPIER vs. Sporttotal AG | PEH WERTPAPIER vs. PKSHA TECHNOLOGY INC |
| 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |