Correlation Between Strattner Financial and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Strattner Financial 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 Strattner Financial and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Strattner Financial Group and Dow Jones Industrial, you can compare the effects of market volatilities on Strattner Financial 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 Strattner Financial with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Strattner Financial and Dow Jones.
Diversification Opportunities for Strattner Financial and Dow Jones
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Strattner and Dow is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Strattner Financial Group 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 Strattner Financial 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 Strattner Financial Group 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 Strattner Financial i.e., Strattner Financial and Dow Jones go up and down completely randomly.
Pair Corralation between Strattner Financial and Dow Jones
Given the investment horizon of 90 days Strattner Financial Group is expected to generate 117.97 times more return on investment than Dow Jones. However, Strattner Financial is 117.97 times more volatile than Dow Jones Industrial. It trades about 0.08 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.16 per unit of risk. If you would invest 0.02 in Strattner Financial Group on September 3, 2024 and sell it today you would earn a total of 0.00 from holding Strattner Financial Group or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Strattner Financial Group vs. Dow Jones Industrial
Performance |
| Timeline |
Strattner Financial and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Strattner Financial Group
Pair trading matchups for Strattner Financial
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Strattner Financial and Dow Jones
The main advantage of trading using opposite Strattner Financial and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Strattner Financial 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.| Strattner Financial vs. Seadrill Limited | Strattner Financial vs. Noble plc | Strattner Financial vs. Borr Drilling | Strattner Financial vs. SCOR PK |
| Dow Jones vs. Eastern Co | Dow Jones vs. Uber Technologies | Dow Jones vs. AKITA Drilling | Dow Jones vs. Chemours Co |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |