Correlation Between Citrus Leisure and Dow Jones
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By analyzing existing cross correlation between Citrus Leisure PLC and Dow Jones Industrial, you can compare the effects of market volatilities on Citrus Leisure 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 Citrus Leisure with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citrus Leisure and Dow Jones.
Diversification Opportunities for Citrus Leisure and Dow Jones
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Citrus and Dow is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Citrus Leisure PLC 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 Citrus Leisure 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 Citrus Leisure PLC 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 Citrus Leisure i.e., Citrus Leisure and Dow Jones go up and down completely randomly.
Pair Corralation between Citrus Leisure and Dow Jones
Assuming the 90 days trading horizon Citrus Leisure is expected to generate 2.22 times less return on investment than Dow Jones. In addition to that, Citrus Leisure is 1.62 times more volatile than Dow Jones Industrial. It trades about 0.08 of its total potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.29 per unit of volatility. If you would invest 4,214,154 in Dow Jones Industrial on August 31, 2024 and sell it today you would earn a total of 258,052 from holding Dow Jones Industrial or generate 6.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.91% |
| Values | Daily Returns |
Citrus Leisure PLC vs. Dow Jones Industrial
Performance |
| Timeline |
Citrus Leisure and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Citrus Leisure PLC
Pair trading matchups for Citrus Leisure
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Citrus Leisure and Dow Jones
The main advantage of trading using opposite Citrus Leisure and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citrus Leisure 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.| Citrus Leisure vs. HNB Finance | Citrus Leisure vs. Prime Lands Residencies | Citrus Leisure vs. Jat Holdings PLC | Citrus Leisure vs. E M L |
| Dow Jones vs. Aerofoam Metals | Dow Jones vs. ACG Metals Limited | Dow Jones vs. China Clean Energy | Dow Jones vs. Fast Retailing Co |
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