Correlation Between Compania Minera and Dow Jones
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By analyzing existing cross correlation between Compania Minera Poderosa and Dow Jones Industrial, you can compare the effects of market volatilities on Compania Minera 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 Compania Minera with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Compania Minera and Dow Jones.
Diversification Opportunities for Compania Minera and Dow Jones
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Compania and Dow is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Compania Minera Poderosa 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 Compania Minera 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 Compania Minera Poderosa 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 Compania Minera i.e., Compania Minera and Dow Jones go up and down completely randomly.
Pair Corralation between Compania Minera and Dow Jones
Assuming the 90 days trading horizon Compania Minera is expected to generate 6.34 times less return on investment than Dow Jones. In addition to that, Compania Minera is 3.83 times more volatile than Dow Jones Industrial. It trades about 0.0 of its total potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.08 per unit of volatility. If you would invest 3,320,393 in Dow Jones Industrial on September 13, 2024 and sell it today you would earn a total of 1,071,019 from holding Dow Jones Industrial or generate 32.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 66.06% |
| Values | Daily Returns |
Compania Minera Poderosa vs. Dow Jones Industrial
Performance |
| Timeline |
Compania Minera and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Compania Minera Poderosa
Pair trading matchups for Compania Minera
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Compania Minera and Dow Jones
The main advantage of trading using opposite Compania Minera and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Compania Minera 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.| Compania Minera vs. Corporacion Aceros Arequipa | Compania Minera vs. Bank of America | Compania Minera vs. Intel | Compania Minera vs. Citigroup |
| Dow Jones vs. ChampionX | Dow Jones vs. Highway Holdings Limited | Dow Jones vs. Westinghouse Air Brake | Dow Jones vs. Cementos Pacasmayo SAA |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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