Correlation Between Pyxis Tankers and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Pyxis Tankers 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 Pyxis Tankers and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pyxis Tankers and Dow Jones Industrial, you can compare the effects of market volatilities on Pyxis Tankers 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 Pyxis Tankers with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pyxis Tankers and Dow Jones.
Diversification Opportunities for Pyxis Tankers and Dow Jones
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Pyxis and Dow is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Pyxis Tankers 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 Pyxis Tankers 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 Pyxis Tankers 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 Pyxis Tankers i.e., Pyxis Tankers and Dow Jones go up and down completely randomly.
Pair Corralation between Pyxis Tankers and Dow Jones
Considering the 90-day investment horizon Pyxis Tankers is expected to under-perform the Dow Jones. In addition to that, Pyxis Tankers is 2.1 times more volatile than Dow Jones Industrial. It trades about -0.25 of its total potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.21 per unit of volatility. If you would invest 4,237,436 in Dow Jones Industrial on August 25, 2024 and sell it today you would earn a total of 192,215 from holding Dow Jones Industrial or generate 4.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Pyxis Tankers vs. Dow Jones Industrial
Performance |
| Timeline |
Pyxis Tankers and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Pyxis Tankers
Pair trading matchups for Pyxis Tankers
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Pyxis Tankers and Dow Jones
The main advantage of trading using opposite Pyxis Tankers and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pyxis Tankers 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.| Pyxis Tankers vs. Global Ship Lease | Pyxis Tankers vs. Costamare | Pyxis Tankers vs. Navios Maritime Partners | Pyxis Tankers vs. Genco Shipping Trading |
| Dow Jones vs. Sphere Entertainment Co | Dow Jones vs. Perseus Mining Limited | Dow Jones vs. Titan Machinery | Dow Jones vs. Simon Property Group |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |