Correlation Between Swan Energy and Dow Jones
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By analyzing existing cross correlation between Swan Energy Limited and Dow Jones Industrial, you can compare the effects of market volatilities on Swan Energy 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 Swan Energy with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Swan Energy and Dow Jones.
Diversification Opportunities for Swan Energy and Dow Jones
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Swan and Dow is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Swan Energy Limited 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 Swan Energy 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 Swan Energy Limited 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 Swan Energy i.e., Swan Energy and Dow Jones go up and down completely randomly.
Pair Corralation between Swan Energy and Dow Jones
Assuming the 90 days trading horizon Swan Energy Limited is expected to generate 3.9 times more return on investment than Dow Jones. However, Swan Energy is 3.9 times more volatile than Dow Jones Industrial. It trades about 0.29 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.27 per unit of risk. If you would invest 49,255 in Swan Energy Limited on August 30, 2024 and sell it today you would earn a total of 12,235 from holding Swan Energy Limited or generate 24.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Swan Energy Limited vs. Dow Jones Industrial
Performance |
| Timeline |
Swan Energy and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Swan Energy Limited
Pair trading matchups for Swan Energy
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Swan Energy and Dow Jones
The main advantage of trading using opposite Swan Energy and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Swan Energy 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.| Swan Energy vs. City Union Bank | Swan Energy vs. DCB Bank Limited | Swan Energy vs. Tamilnad Mercantile Bank | Swan Energy vs. JM Financial Limited |
| Dow Jones vs. Skillful Craftsman Education | Dow Jones vs. Acco Brands | Dow Jones vs. Cracker Barrel Old | Dow Jones vs. Coursera |
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 CEOs Directory module to screen CEOs from public companies around the world.
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