Correlation Between 01166VAA7 and Dow Jones
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By analyzing existing cross correlation between ALK 48 15 AUG 27 and Dow Jones Industrial, you can compare the effects of market volatilities on 01166VAA7 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 01166VAA7 with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of 01166VAA7 and Dow Jones.
Diversification Opportunities for 01166VAA7 and Dow Jones
Modest diversification
The 3 months correlation between 01166VAA7 and Dow is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding ALK 48 15 AUG 27 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 01166VAA7 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 ALK 48 15 AUG 27 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 01166VAA7 i.e., 01166VAA7 and Dow Jones go up and down completely randomly.
Pair Corralation between 01166VAA7 and Dow Jones
Assuming the 90 days trading horizon ALK 48 15 AUG 27 is expected to under-perform the Dow Jones. In addition to that, 01166VAA7 is 1.86 times more volatile than Dow Jones Industrial. It trades about -0.31 of its total potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.27 per unit of volatility. If you would invest 4,238,757 in Dow Jones Industrial on August 28, 2024 and sell it today you would earn a total of 247,274 from holding Dow Jones Industrial or generate 5.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 45.45% |
| Values | Daily Returns |
ALK 48 15 AUG 27 vs. Dow Jones Industrial
Performance |
| Timeline |
01166VAA7 and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
ALK 48 15 AUG 27
Pair trading matchups for 01166VAA7
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with 01166VAA7 and Dow Jones
The main advantage of trading using opposite 01166VAA7 and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 01166VAA7 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.| 01166VAA7 vs. Burlington Stores | 01166VAA7 vs. Ross Stores | 01166VAA7 vs. PVH Corp | 01166VAA7 vs. Xunlei Ltd Adr |
| 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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