Correlation Between NewFunds MAPPS and Dow Jones
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By analyzing existing cross correlation between NewFunds MAPPS Growth and Dow Jones Industrial, you can compare the effects of market volatilities on NewFunds MAPPS 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 NewFunds MAPPS with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of NewFunds MAPPS and Dow Jones.
Diversification Opportunities for NewFunds MAPPS and Dow Jones
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between NewFunds and Dow is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding NewFunds MAPPS Growth 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 NewFunds MAPPS 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 NewFunds MAPPS Growth 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 NewFunds MAPPS i.e., NewFunds MAPPS and Dow Jones go up and down completely randomly.
Pair Corralation between NewFunds MAPPS and Dow Jones
Assuming the 90 days trading horizon NewFunds MAPPS is expected to generate 1.44 times less return on investment than Dow Jones. In addition to that, NewFunds MAPPS is 1.16 times more volatile than Dow Jones Industrial. It trades about 0.07 of its total potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.12 per unit of volatility. If you would invest 3,624,550 in Dow Jones Industrial on August 27, 2024 and sell it today you would earn a total of 805,101 from holding Dow Jones Industrial or generate 22.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.39% |
| Values | Daily Returns |
NewFunds MAPPS Growth vs. Dow Jones Industrial
Performance |
| Timeline |
NewFunds MAPPS and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
NewFunds MAPPS Growth
Pair trading matchups for NewFunds MAPPS
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with NewFunds MAPPS and Dow Jones
The main advantage of trading using opposite NewFunds MAPPS and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NewFunds MAPPS 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.| NewFunds MAPPS vs. Europa Metals | NewFunds MAPPS vs. British American Tobacco | NewFunds MAPPS vs. Kap Industrial Holdings | NewFunds MAPPS vs. Anglo American Platinum |
| Dow Jones vs. MI Homes | Dow Jones vs. Franklin Street Properties | Dow Jones vs. Summit Hotel Properties | Dow Jones vs. Portillos |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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