Correlation Between STELMINE CANADA and Dow Jones
Can any of the company-specific risk be diversified away by investing in both STELMINE CANADA 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 STELMINE CANADA and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between STELMINE CANADA LTD and Dow Jones Industrial, you can compare the effects of market volatilities on STELMINE CANADA 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 STELMINE CANADA with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of STELMINE CANADA and Dow Jones.
Diversification Opportunities for STELMINE CANADA and Dow Jones
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between STELMINE and Dow is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding STELMINE CANADA LTD 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 STELMINE CANADA 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 STELMINE CANADA LTD 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 STELMINE CANADA i.e., STELMINE CANADA and Dow Jones go up and down completely randomly.
Pair Corralation between STELMINE CANADA and Dow Jones
Assuming the 90 days horizon STELMINE CANADA LTD is expected to generate 143.09 times more return on investment than Dow Jones. However, STELMINE CANADA is 143.09 times more volatile than Dow Jones Industrial. It trades about 0.12 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.08 per unit of risk. If you would invest 12.00 in STELMINE CANADA LTD on August 27, 2024 and sell it today you would lose (11.95) from holding STELMINE CANADA LTD or give up 99.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.22% |
| Values | Daily Returns |
STELMINE CANADA LTD vs. Dow Jones Industrial
Performance |
| Timeline |
STELMINE CANADA and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
STELMINE CANADA LTD
Pair trading matchups for STELMINE CANADA
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with STELMINE CANADA and Dow Jones
The main advantage of trading using opposite STELMINE CANADA and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if STELMINE CANADA 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.| STELMINE CANADA vs. Cogent Communications Holdings | STELMINE CANADA vs. Gamma Communications plc | STELMINE CANADA vs. Singapore Telecommunications Limited | STELMINE CANADA vs. KRISPY KREME DL 01 |
| 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |