Correlation Between Poly Medicure and Dow Jones
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By analyzing existing cross correlation between Poly Medicure Limited and Dow Jones Industrial, you can compare the effects of market volatilities on Poly Medicure 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 Poly Medicure with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Poly Medicure and Dow Jones.
Diversification Opportunities for Poly Medicure and Dow Jones
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Poly and Dow is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Poly Medicure 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 Poly Medicure 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 Poly Medicure 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 Poly Medicure i.e., Poly Medicure and Dow Jones go up and down completely randomly.
Pair Corralation between Poly Medicure and Dow Jones
Assuming the 90 days trading horizon Poly Medicure Limited is expected to generate 3.4 times more return on investment than Dow Jones. However, Poly Medicure is 3.4 times more volatile than Dow Jones Industrial. It trades about 0.1 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.08 per unit of risk. If you would invest 92,375 in Poly Medicure Limited on August 30, 2024 and sell it today you would earn a total of 176,805 from holding Poly Medicure Limited or generate 191.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.38% |
| Values | Daily Returns |
Poly Medicure Limited vs. Dow Jones Industrial
Performance |
| Timeline |
Poly Medicure and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Poly Medicure Limited
Pair trading matchups for Poly Medicure
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Poly Medicure and Dow Jones
The main advantage of trading using opposite Poly Medicure and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Poly Medicure 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.| Poly Medicure vs. Sukhjit Starch Chemicals | Poly Medicure vs. Thirumalai Chemicals Limited | Poly Medicure vs. Golden Tobacco Limited | Poly Medicure vs. Pritish Nandy Communications |
| Dow Jones vs. Kaltura | Dow Jones vs. Artisan Partners Asset | Dow Jones vs. US Global Investors | Dow Jones vs. Analog Devices |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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