Correlation Between Persistent Systems and Dow Jones
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By analyzing existing cross correlation between Persistent Systems Limited and Dow Jones Industrial, you can compare the effects of market volatilities on Persistent Systems 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 Persistent Systems with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Persistent Systems and Dow Jones.
Diversification Opportunities for Persistent Systems and Dow Jones
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Persistent and Dow is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Persistent Systems Limited 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 Persistent Systems 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 Persistent Systems Limited 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 Persistent Systems i.e., Persistent Systems and Dow Jones go up and down completely randomly.
Pair Corralation between Persistent Systems and Dow Jones
Assuming the 90 days trading horizon Persistent Systems Limited is expected to generate 1.97 times more return on investment than Dow Jones. However, Persistent Systems is 1.97 times more volatile than Dow Jones Industrial. It trades about -0.01 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about -0.03 per unit of risk. If you would invest 564,828 in Persistent Systems Limited on January 26, 2025 and sell it today you would lose (37,478) from holding Persistent Systems Limited or give up 6.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 96.0% |
| Values | Daily Returns |
Persistent Systems Limited vs. Dow Jones Industrial
Performance |
| Timeline |
Persistent Systems and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Persistent Systems Limited
Pair trading matchups for Persistent Systems
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Persistent Systems and Dow Jones
The main advantage of trading using opposite Persistent Systems and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Persistent Systems 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.| Persistent Systems vs. Hilton Metal Forging | Persistent Systems vs. LLOYDS METALS AND | Persistent Systems vs. Hindustan Copper Limited | Persistent Systems vs. Teamlease Services Limited |
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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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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