Correlation Between SLC Agricola and Dow Jones
Can any of the company-specific risk be diversified away by investing in both SLC Agricola 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 SLC Agricola and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SLC Agricola SA and Dow Jones Industrial, you can compare the effects of market volatilities on SLC Agricola 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 SLC Agricola with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of SLC Agricola and Dow Jones.
Diversification Opportunities for SLC Agricola and Dow Jones
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SLC and Dow is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding SLC Agricola SA 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 SLC Agricola 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 SLC Agricola SA 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 SLC Agricola i.e., SLC Agricola and Dow Jones go up and down completely randomly.
Pair Corralation between SLC Agricola and Dow Jones
Assuming the 90 days horizon SLC Agricola SA is expected to generate 10.15 times more return on investment than Dow Jones. However, SLC Agricola is 10.15 times more volatile than Dow Jones Industrial. It trades about 0.02 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 357.00 in SLC Agricola SA on August 31, 2024 and sell it today you would lose (72.00) from holding SLC Agricola SA or give up 20.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 97.86% |
| Values | Daily Returns |
SLC Agricola SA vs. Dow Jones Industrial
Performance |
| Timeline |
SLC Agricola and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
SLC Agricola SA
Pair trading matchups for SLC Agricola
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with SLC Agricola and Dow Jones
The main advantage of trading using opposite SLC Agricola and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SLC Agricola 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.| SLC Agricola vs. Artisan Consumer Goods | SLC Agricola vs. Altavoz Entertainment | SLC Agricola vs. Avi Ltd ADR | SLC Agricola vs. Aryzta AG PK |
| Dow Jones vs. Aerofoam Metals | Dow Jones vs. ACG Metals Limited | Dow Jones vs. China Clean Energy | Dow Jones vs. Fast Retailing 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |