Correlation Between 00108WAN0 and Dow Jones
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By analyzing existing cross correlation between AEP 345 15 MAY 51 and Dow Jones Industrial, you can compare the effects of market volatilities on 00108WAN0 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 00108WAN0 with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of 00108WAN0 and Dow Jones.
Diversification Opportunities for 00108WAN0 and Dow Jones
Average diversification
The 3 months correlation between 00108WAN0 and Dow is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding AEP 345 15 MAY 51 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 00108WAN0 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 AEP 345 15 MAY 51 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 00108WAN0 i.e., 00108WAN0 and Dow Jones go up and down completely randomly.
Pair Corralation between 00108WAN0 and Dow Jones
Assuming the 90 days trading horizon AEP 345 15 MAY 51 is expected to under-perform the Dow Jones. In addition to that, 00108WAN0 is 1.65 times more volatile than Dow Jones Industrial. It trades about -0.15 of its total potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.29 per unit of volatility. If you would invest 4,214,154 in Dow Jones Industrial on August 31, 2024 and sell it today you would earn a total of 258,052 from holding Dow Jones Industrial or generate 6.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 77.27% |
| Values | Daily Returns |
AEP 345 15 MAY 51 vs. Dow Jones Industrial
Performance |
| Timeline |
00108WAN0 and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
AEP 345 15 MAY 51
Pair trading matchups for 00108WAN0
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with 00108WAN0 and Dow Jones
The main advantage of trading using opposite 00108WAN0 and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 00108WAN0 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.| 00108WAN0 vs. Delek Drilling | 00108WAN0 vs. Bassett Furniture Industries | 00108WAN0 vs. JBG SMITH Properties | 00108WAN0 vs. Nextplat Corp |
| Dow Jones vs. Aerofoam Metals | Dow Jones vs. ACG Metals Limited | Dow Jones vs. China Clean Energy | Dow Jones vs. Fast Retailing Co |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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