Correlation Between NewFunds Shariah and Dow Jones
Specify exactly 2 symbols:
By analyzing existing cross correlation between NewFunds Shariah Top and Dow Jones Industrial, you can compare the effects of market volatilities on NewFunds Shariah 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 Shariah with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of NewFunds Shariah and Dow Jones.
Diversification Opportunities for NewFunds Shariah and Dow Jones
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between NewFunds and Dow is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding NewFunds Shariah Top 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 Shariah 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 Shariah Top 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 Shariah i.e., NewFunds Shariah and Dow Jones go up and down completely randomly.
Pair Corralation between NewFunds Shariah and Dow Jones
Assuming the 90 days trading horizon NewFunds Shariah is expected to generate 3.38 times less return on investment than Dow Jones. In addition to that, NewFunds Shariah is 2.61 times more volatile than Dow Jones Industrial. It trades about 0.01 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 3,515,104 in Dow Jones Industrial on September 14, 2024 and sell it today you would earn a total of 876,308 from holding Dow Jones Industrial or generate 24.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.63% |
| Values | Daily Returns |
NewFunds Shariah Top vs. Dow Jones Industrial
Performance |
| Timeline |
NewFunds Shariah and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
NewFunds Shariah Top
Pair trading matchups for NewFunds Shariah
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with NewFunds Shariah and Dow Jones
The main advantage of trading using opposite NewFunds Shariah and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NewFunds Shariah 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 Shariah vs. Centaur Bci Balanced | NewFunds Shariah vs. Europa Metals | NewFunds Shariah vs. British American Tobacco | NewFunds Shariah vs. Kap Industrial Holdings |
| Dow Jones vs. Hurco Companies | Dow Jones vs. Tyson Foods | Dow Jones vs. MYR Group | Dow Jones vs. Cannae Holdings |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |