Correlation Between PFA Invest and Dow Jones
Can any of the company-specific risk be diversified away by investing in both PFA Invest 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 PFA Invest and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PFA Invest Kreditobligationer and Dow Jones Industrial, you can compare the effects of market volatilities on PFA Invest 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 PFA Invest with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of PFA Invest and Dow Jones.
Diversification Opportunities for PFA Invest and Dow Jones
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between PFA and Dow is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding PFA Invest Kreditobligationer 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 PFA Invest 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 PFA Invest Kreditobligationer 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 PFA Invest i.e., PFA Invest and Dow Jones go up and down completely randomly.
Pair Corralation between PFA Invest and Dow Jones
If you would invest 3,400,504 in Dow Jones Industrial on September 2, 2024 and sell it today you would earn a total of 1,090,561 from holding Dow Jones Industrial or generate 32.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 0.2% |
| Values | Daily Returns |
PFA Invest Kreditobligationer vs. Dow Jones Industrial
Performance |
| Timeline |
PFA Invest and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
PFA Invest Kreditobligationer
Pair trading matchups for PFA Invest
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with PFA Invest and Dow Jones
The main advantage of trading using opposite PFA Invest and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PFA Invest 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.| PFA Invest vs. Skjern Bank AS | PFA Invest vs. Scandinavian Medical Solutions | PFA Invest vs. Spar Nord Bank | PFA Invest vs. Sydbank AS |
| 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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