Correlation Between Polyplex Public and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Polyplex Public 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 Polyplex Public and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Polyplex Public and Dow Jones Industrial, you can compare the effects of market volatilities on Polyplex Public 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 Polyplex Public with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Polyplex Public and Dow Jones.
Diversification Opportunities for Polyplex Public and Dow Jones
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Polyplex and Dow is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Polyplex Public 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 Polyplex Public 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 Polyplex Public 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 Polyplex Public i.e., Polyplex Public and Dow Jones go up and down completely randomly.
Pair Corralation between Polyplex Public and Dow Jones
Assuming the 90 days trading horizon Polyplex Public is expected to generate 89.95 times more return on investment than Dow Jones. However, Polyplex Public is 89.95 times more volatile than Dow Jones Industrial. It trades about 0.06 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 2,457 in Polyplex Public on September 4, 2024 and sell it today you would lose (1,210) from holding Polyplex Public or give up 49.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 96.97% |
| Values | Daily Returns |
Polyplex Public vs. Dow Jones Industrial
Performance |
| Timeline |
Polyplex Public and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Polyplex Public
Pair trading matchups for Polyplex Public
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Polyplex Public and Dow Jones
The main advantage of trading using opposite Polyplex Public and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Polyplex Public 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.| Polyplex Public vs. PTT Public | Polyplex Public vs. The Siam Commercial | Polyplex Public vs. Airports of Thailand | Polyplex Public vs. CP ALL Public |
| Dow Jones vs. Gentex | Dow Jones vs. American Axle Manufacturing | Dow Jones vs. Pearson PLC ADR | Dow Jones vs. Marine Products |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Positions Ratings 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 |