Correlation Between Peak Fintech and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Peak Fintech 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 Peak Fintech and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Peak Fintech Group and Dow Jones Industrial, you can compare the effects of market volatilities on Peak Fintech 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 Peak Fintech with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Peak Fintech and Dow Jones.
Diversification Opportunities for Peak Fintech and Dow Jones
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Peak and Dow is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Peak Fintech 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 Peak Fintech 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 Peak Fintech 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 Peak Fintech i.e., Peak Fintech and Dow Jones go up and down completely randomly.
Pair Corralation between Peak Fintech and Dow Jones
If you would invest (100.00) in Peak Fintech Group on September 12, 2024 and sell it today you would earn a total of 100.00 from holding Peak Fintech Group or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Peak Fintech Group vs. Dow Jones Industrial
Performance |
| Timeline |
Peak Fintech and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Peak Fintech Group
Pair trading matchups for Peak Fintech
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Peak Fintech and Dow Jones
The main advantage of trading using opposite Peak Fintech and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Peak Fintech 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.| Peak Fintech vs. NL Industries | Peak Fintech vs. Chemours Co | Peak Fintech vs. Origin Materials | Peak Fintech vs. SEI Investments |
| Dow Jones vs. Aeye Inc | Dow Jones vs. Gentex | Dow Jones vs. Marine Products | Dow Jones vs. CarsalesCom Ltd ADR |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |