Correlation Between Sawang Export and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Sawang Export 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 Sawang Export and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sawang Export Public and Dow Jones Industrial, you can compare the effects of market volatilities on Sawang Export 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 Sawang Export with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sawang Export and Dow Jones.
Diversification Opportunities for Sawang Export and Dow Jones
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Sawang and Dow is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Sawang Export Public 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 Sawang Export 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 Sawang Export Public 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 Sawang Export i.e., Sawang Export and Dow Jones go up and down completely randomly.
Pair Corralation between Sawang Export and Dow Jones
Assuming the 90 days trading horizon Sawang Export Public is expected to generate 92.82 times more return on investment than Dow Jones. However, Sawang Export is 92.82 times more volatile than Dow Jones Industrial. It trades about 0.06 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.12 per unit of risk. If you would invest 1,410 in Sawang Export Public on September 4, 2024 and sell it today you would lose (240.00) from holding Sawang Export Public or give up 17.02% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 97.15% |
| Values | Daily Returns |
Sawang Export Public vs. Dow Jones Industrial
Performance |
| Timeline |
Sawang Export and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Sawang Export Public
Pair trading matchups for Sawang Export
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Sawang Export and Dow Jones
The main advantage of trading using opposite Sawang Export and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sawang Export 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.| Sawang Export vs. Sabina Public | Sawang Export vs. Rockworth Public | Sawang Export vs. Thaitheparos Public | Sawang Export vs. Sappe Public |
| Dow Jones vs. Gentex | Dow Jones vs. American Axle Manufacturing | Dow Jones vs. Pearson PLC ADR | Dow Jones vs. Marine Products |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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