Correlation Between Saniona AB and Dow Jones
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By analyzing existing cross correlation between Saniona AB TO and Dow Jones Industrial, you can compare the effects of market volatilities on Saniona AB 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 Saniona AB with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saniona AB and Dow Jones.
Diversification Opportunities for Saniona AB and Dow Jones
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Saniona and Dow is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Saniona AB TO 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 Saniona AB 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 Saniona AB TO 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 Saniona AB i.e., Saniona AB and Dow Jones go up and down completely randomly.
Pair Corralation between Saniona AB and Dow Jones
Assuming the 90 days trading horizon Saniona AB TO is expected to generate 39.88 times more return on investment than Dow Jones. However, Saniona AB is 39.88 times more volatile than Dow Jones Industrial. It trades about 0.27 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about -0.3 per unit of risk. If you would invest 64.00 in Saniona AB TO on September 24, 2024 and sell it today you would earn a total of 131.00 from holding Saniona AB TO or generate 204.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Saniona AB TO vs. Dow Jones Industrial
Performance |
| Timeline |
Saniona AB and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Saniona AB TO
Pair trading matchups for Saniona AB
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Saniona AB and Dow Jones
The main advantage of trading using opposite Saniona AB and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saniona AB 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.| Saniona AB vs. AstraZeneca PLC | Saniona AB vs. Investor AB ser | Saniona AB vs. Investor AB ser | Saniona AB vs. Atlas Copco AB |
| Dow Jones vs. Teleflex Incorporated | Dow Jones vs. Sonida Senior Living | Dow Jones vs. Avadel Pharmaceuticals PLC | Dow Jones vs. Cardinal Health |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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