Correlation Between Stryve Foods and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Stryve Foods 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 Stryve Foods and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stryve Foods and Dow Jones Industrial, you can compare the effects of market volatilities on Stryve Foods 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 Stryve Foods with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stryve Foods and Dow Jones.
Diversification Opportunities for Stryve Foods and Dow Jones
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Stryve and Dow is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Stryve Foods 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 Stryve Foods 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 Stryve Foods 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 Stryve Foods i.e., Stryve Foods and Dow Jones go up and down completely randomly.
Pair Corralation between Stryve Foods and Dow Jones
Assuming the 90 days horizon Stryve Foods is expected to generate 26.78 times more return on investment than Dow Jones. However, Stryve Foods is 26.78 times more volatile than Dow Jones Industrial. It trades about 0.03 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.22 per unit of risk. If you would invest 0.65 in Stryve Foods on August 27, 2024 and sell it today you would lose (0.20) from holding Stryve Foods or give up 30.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 66.67% |
| Values | Daily Returns |
Stryve Foods vs. Dow Jones Industrial
Performance |
| Timeline |
Stryve Foods and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Stryve Foods
Pair trading matchups for Stryve Foods
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Stryve Foods and Dow Jones
The main advantage of trading using opposite Stryve Foods and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stryve Foods 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.| Stryve Foods vs. Stryve Foods | Stryve Foods vs. Talkspace | Stryve Foods vs. AEye Inc | Stryve Foods vs. Microvast Holdings |
| Dow Jones vs. Meiwu Technology Co | Dow Jones vs. 17 Education Technology | Dow Jones vs. 51Talk Online Education | Dow Jones vs. Afya |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |