Correlation Between Standard Bank and Dow Jones
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By analyzing existing cross correlation between Standard Bank WTI and Dow Jones Industrial, you can compare the effects of market volatilities on Standard Bank 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 Standard Bank with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Standard Bank and Dow Jones.
Diversification Opportunities for Standard Bank and Dow Jones
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Standard and Dow is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Standard Bank WTI 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 Standard Bank 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 Standard Bank WTI 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 Standard Bank i.e., Standard Bank and Dow Jones go up and down completely randomly.
Pair Corralation between Standard Bank and Dow Jones
If you would invest 4,284,026 in Dow Jones Industrial on October 21, 2024 and sell it today you would earn a total of 64,757 from holding Dow Jones Industrial or generate 1.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 90.0% |
| Values | Daily Returns |
Standard Bank WTI vs. Dow Jones Industrial
Performance |
| Timeline |
Standard Bank and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Standard Bank WTI
Pair trading matchups for Standard Bank
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Standard Bank and Dow Jones
The main advantage of trading using opposite Standard Bank and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Standard Bank 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.| Standard Bank vs. Standard Bank Oil | Standard Bank vs. FNB ETN on | Standard Bank vs. Satrix MSCI World | Standard Bank vs. GSETNC |
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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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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