Correlation Between SASINI and Dow Jones
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By analyzing existing cross correlation between SASINI LTD and Dow Jones Industrial, you can compare the effects of market volatilities on SASINI 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 SASINI with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of SASINI and Dow Jones.
Diversification Opportunities for SASINI and Dow Jones
Pay attention - limited upside
The 3 months correlation between SASINI and Dow is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding SASINI LTD 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 SASINI 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 SASINI LTD 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 SASINI i.e., SASINI and Dow Jones go up and down completely randomly.
Pair Corralation between SASINI and Dow Jones
Assuming the 90 days trading horizon SASINI LTD is expected to under-perform the Dow Jones. In addition to that, SASINI is 4.07 times more volatile than Dow Jones Industrial. It trades about -0.02 of its total potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.12 per unit of volatility. If you would invest 3,640,493 in Dow Jones Industrial on September 5, 2024 and sell it today you would earn a total of 830,060 from holding Dow Jones Industrial or generate 22.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 98.79% |
| Values | Daily Returns |
SASINI LTD vs. Dow Jones Industrial
Performance |
| Timeline |
SASINI and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
SASINI LTD
Pair trading matchups for SASINI
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with SASINI and Dow Jones
The main advantage of trading using opposite SASINI and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SASINI 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.| SASINI vs. EQUITY GROUP HOLDINGS | SASINI vs. BRITISH AMERICAN TOBACCO | SASINI vs. CO OPERATIVE BANK OF | SASINI vs. ABSA NEW GOLD |
| Dow Jones vs. Shake Shack | Dow Jones vs. Artisan Partners Asset | Dow Jones vs. Dave Busters Entertainment | Dow Jones vs. Meli Hotels International |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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