Correlation Between UMH Properties and Dow Jones
Can any of the company-specific risk be diversified away by investing in both UMH Properties 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 UMH Properties and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between UMH Properties and Dow Jones Industrial, you can compare the effects of market volatilities on UMH Properties 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 UMH Properties with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of UMH Properties and Dow Jones.
Diversification Opportunities for UMH Properties and Dow Jones
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between UMH and Dow is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding UMH Properties 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 UMH Properties 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 UMH Properties 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 UMH Properties i.e., UMH Properties and Dow Jones go up and down completely randomly.
Pair Corralation between UMH Properties and Dow Jones
Considering the 90-day investment horizon UMH Properties is expected to generate 2.01 times more return on investment than Dow Jones. However, UMH Properties is 2.01 times more volatile than Dow Jones Industrial. It trades about 0.11 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.11 per unit of risk. If you would invest 1,437 in UMH Properties on August 28, 2024 and sell it today you would earn a total of 502.00 from holding UMH Properties or generate 34.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
UMH Properties vs. Dow Jones Industrial
Performance |
| Timeline |
UMH Properties and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
UMH Properties
Pair trading matchups for UMH Properties
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with UMH Properties and Dow Jones
The main advantage of trading using opposite UMH Properties and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UMH Properties 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.| UMH Properties vs. Sun Communities | UMH Properties vs. Clipper Realty | UMH Properties vs. UDR Inc | UMH Properties vs. Apartment Investment and |
| Dow Jones vs. CECO Environmental Corp | Dow Jones vs. Western Acquisition Ventures | Dow Jones vs. Tyson Foods | Dow Jones vs. Inflection Point Acquisition |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |