Correlation Between AXS TSLA and Dow Jones
Can any of the company-specific risk be diversified away by investing in both AXS TSLA 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 AXS TSLA and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AXS TSLA Bear and Dow Jones Industrial, you can compare the effects of market volatilities on AXS TSLA 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 AXS TSLA with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of AXS TSLA and Dow Jones.
Diversification Opportunities for AXS TSLA and Dow Jones
Excellent diversification
The 3 months correlation between AXS and Dow is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding AXS TSLA Bear 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 AXS TSLA 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 AXS TSLA Bear 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 AXS TSLA i.e., AXS TSLA and Dow Jones go up and down completely randomly.
Pair Corralation between AXS TSLA and Dow Jones
Given the investment horizon of 90 days AXS TSLA Bear is expected to generate 115.37 times more return on investment than Dow Jones. However, AXS TSLA is 115.37 times more volatile than Dow Jones Industrial. It trades about 0.19 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 1,505 in AXS TSLA Bear on August 30, 2024 and sell it today you would earn a total of 3,133 from holding AXS TSLA Bear or generate 208.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AXS TSLA Bear vs. Dow Jones Industrial
Performance |
| Timeline |
AXS TSLA and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
AXS TSLA Bear
Pair trading matchups for AXS TSLA
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with AXS TSLA and Dow Jones
The main advantage of trading using opposite AXS TSLA and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AXS TSLA 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.| AXS TSLA vs. AXS 125X NVDA | AXS TSLA vs. Direxion Shares ETF | AXS TSLA vs. Direxion Shares ETF | AXS TSLA vs. Tuttle Capital Short |
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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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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