Correlation Between 00131M2B8 and Dow Jones
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By analyzing existing cross correlation between AIA 4875 11 MAR 44 and Dow Jones Industrial, you can compare the effects of market volatilities on 00131M2B8 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 00131M2B8 with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of 00131M2B8 and Dow Jones.
Diversification Opportunities for 00131M2B8 and Dow Jones
Significant diversification
The 3 months correlation between 00131M2B8 and Dow is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding AIA 4875 11 MAR 44 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 00131M2B8 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 AIA 4875 11 MAR 44 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 00131M2B8 i.e., 00131M2B8 and Dow Jones go up and down completely randomly.
Pair Corralation between 00131M2B8 and Dow Jones
If you would invest 4,205,219 in Dow Jones Industrial on September 2, 2024 and sell it today you would earn a total of 285,846 from holding Dow Jones Industrial or generate 6.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 9.52% |
| Values | Daily Returns |
AIA 4875 11 MAR 44 vs. Dow Jones Industrial
Performance |
| Timeline |
00131M2B8 and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
AIA 4875 11 MAR 44
Pair trading matchups for 00131M2B8
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with 00131M2B8 and Dow Jones
The main advantage of trading using opposite 00131M2B8 and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 00131M2B8 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.| 00131M2B8 vs. Analog Devices | 00131M2B8 vs. FARO Technologies | 00131M2B8 vs. HF Sinclair Corp | 00131M2B8 vs. Senmiao Technology |
| Dow Jones vs. Dream Finders Homes | Dow Jones vs. GEN Restaurant Group, | Dow Jones vs. National Beverage Corp | Dow Jones vs. BJs Restaurants |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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