Correlation Between Stingray and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Stingray 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 Stingray and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stingray Group and Dow Jones Industrial, you can compare the effects of market volatilities on Stingray 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 Stingray with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stingray and Dow Jones.
Diversification Opportunities for Stingray and Dow Jones
Very good diversification
The 3 months correlation between Stingray and Dow is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Stingray 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 Stingray 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 Stingray 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 Stingray i.e., Stingray and Dow Jones go up and down completely randomly.
Pair Corralation between Stingray and Dow Jones
Assuming the 90 days horizon Stingray Group is expected to generate 3.74 times more return on investment than Dow Jones. However, Stingray is 3.74 times more volatile than Dow Jones Industrial. It trades about 0.06 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.07 per unit of risk. If you would invest 320.00 in Stingray Group on August 24, 2024 and sell it today you would earn a total of 263.00 from holding Stingray Group or generate 82.19% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Stingray Group vs. Dow Jones Industrial
Performance |
Timeline |
Stingray and Dow Jones Volatility Contrast
Predicted Return Density |
Returns |
Stingray Group
Pair trading matchups for Stingray
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Stingray and Dow Jones
The main advantage of trading using opposite Stingray and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stingray 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.Stingray vs. Nordic Semiconductor ASA | Stingray vs. Harmony Gold Mining | Stingray vs. KLA Tencor | Stingray vs. MACOM Technology Solutions |
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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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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