Correlation Between PolyPeptide Group and Dow Jones
Can any of the company-specific risk be diversified away by investing in both PolyPeptide Group 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 PolyPeptide Group and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PolyPeptide Group AG and Dow Jones Industrial, you can compare the effects of market volatilities on PolyPeptide Group 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 PolyPeptide Group with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of PolyPeptide Group and Dow Jones.
Diversification Opportunities for PolyPeptide Group and Dow Jones
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between PolyPeptide and Dow is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding PolyPeptide Group AG 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 PolyPeptide Group 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 PolyPeptide Group AG 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 PolyPeptide Group i.e., PolyPeptide Group and Dow Jones go up and down completely randomly.
Pair Corralation between PolyPeptide Group and Dow Jones
Assuming the 90 days trading horizon PolyPeptide Group AG is expected to generate 4.11 times more return on investment than Dow Jones. However, PolyPeptide Group is 4.11 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 0.11 per unit of risk. If you would invest 1,660 in PolyPeptide Group AG on September 3, 2024 and sell it today you would earn a total of 1,235 from holding PolyPeptide Group AG or generate 74.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.13% |
| Values | Daily Returns |
PolyPeptide Group AG vs. Dow Jones Industrial
Performance |
| Timeline |
PolyPeptide Group and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
PolyPeptide Group AG
Pair trading matchups for PolyPeptide Group
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with PolyPeptide Group and Dow Jones
The main advantage of trading using opposite PolyPeptide Group and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PolyPeptide Group 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.| PolyPeptide Group vs. Bachem Holding AG | PolyPeptide Group vs. Siegfried Holding | PolyPeptide Group vs. VAT Group AG | PolyPeptide Group vs. Comet Holding AG |
| Dow Jones vs. Eastern Co | Dow Jones vs. Uber Technologies | Dow Jones vs. AKITA Drilling | Dow Jones vs. Chemours Co |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |