Correlation Between Sparinvest INDEX and Dow Jones
Specify exactly 2 symbols:
By analyzing existing cross correlation between Sparinvest INDEX Hj and Dow Jones Industrial, you can compare the effects of market volatilities on Sparinvest INDEX 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 Sparinvest INDEX with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sparinvest INDEX and Dow Jones.
Diversification Opportunities for Sparinvest INDEX and Dow Jones
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Sparinvest and Dow is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Sparinvest INDEX Hj 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 Sparinvest INDEX 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 Sparinvest INDEX Hj 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 Sparinvest INDEX i.e., Sparinvest INDEX and Dow Jones go up and down completely randomly.
Pair Corralation between Sparinvest INDEX and Dow Jones
Assuming the 90 days trading horizon Sparinvest INDEX is expected to generate 1.64 times less return on investment than Dow Jones. But when comparing it to its historical volatility, Sparinvest INDEX Hj is 1.41 times less risky than Dow Jones. It trades about 0.21 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 4,211,440 in Dow Jones Industrial on August 26, 2024 and sell it today you would earn a total of 218,211 from holding Dow Jones Industrial or generate 5.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sparinvest INDEX Hj vs. Dow Jones Industrial
Performance |
| Timeline |
Sparinvest INDEX and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Sparinvest INDEX Hj
Pair trading matchups for Sparinvest INDEX
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Sparinvest INDEX and Dow Jones
The main advantage of trading using opposite Sparinvest INDEX and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sparinvest INDEX 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.| Sparinvest INDEX vs. Jyske Invest Nye | Sparinvest INDEX vs. Jyske Invest Korte | Sparinvest INDEX vs. Jyske Invest Nye | Sparinvest INDEX vs. Jyske Invest Virksomhedsobligationer |
| Dow Jones vs. Vistra Energy Corp | Dow Jones vs. Fluence Energy | Dow Jones vs. Old Republic International | Dow Jones vs. Empresa Distribuidora y |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |