Correlation Between Advocate Capital and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Advocate Capital 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 Advocate Capital and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Advocate Capital Management and Dow Jones Industrial, you can compare the effects of market volatilities on Advocate Capital 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 Advocate Capital with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advocate Capital and Dow Jones.
Diversification Opportunities for Advocate Capital and Dow Jones
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Advocate and Dow is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Advocate Capital Management 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 Advocate Capital 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 Advocate Capital Management 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 Advocate Capital i.e., Advocate Capital and Dow Jones go up and down completely randomly.
Pair Corralation between Advocate Capital and Dow Jones
If you would invest 3,387,540 in Dow Jones Industrial on January 13, 2025 and sell it today you would earn a total of 633,731 from holding Dow Jones Industrial or generate 18.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Advocate Capital Management vs. Dow Jones Industrial
Performance |
| Timeline |
Advocate Capital and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Advocate Capital Management
Pair trading matchups for Advocate Capital
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Advocate Capital and Dow Jones
The main advantage of trading using opposite Advocate Capital and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advocate Capital 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.| Advocate Capital vs. iShares Core Growth | Advocate Capital vs. Alpha Architect Gdsdn | Advocate Capital vs. VanEck Inflation Allocation | Advocate Capital vs. ClearShares OCIO ETF |
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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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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