Correlation Between 02378MAA9 and Dow Jones
Specify exactly 2 symbols:
By analyzing existing cross correlation between AAL 35 15 FEB 32 and Dow Jones Industrial, you can compare the effects of market volatilities on 02378MAA9 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 02378MAA9 with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of 02378MAA9 and Dow Jones.
Diversification Opportunities for 02378MAA9 and Dow Jones
Modest diversification
The 3 months correlation between 02378MAA9 and Dow is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding AAL 35 15 FEB 32 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 02378MAA9 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 AAL 35 15 FEB 32 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 02378MAA9 i.e., 02378MAA9 and Dow Jones go up and down completely randomly.
Pair Corralation between 02378MAA9 and Dow Jones
Assuming the 90 days trading horizon AAL 35 15 FEB 32 is expected to under-perform the Dow Jones. In addition to that, 02378MAA9 is 10.04 times more volatile than Dow Jones Industrial. It trades about -0.46 of its total potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.37 per unit of volatility. If you would invest 4,179,460 in Dow Jones Industrial on September 3, 2024 and sell it today you would earn a total of 298,740 from holding Dow Jones Industrial or generate 7.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 20.0% |
| Values | Daily Returns |
AAL 35 15 FEB 32 vs. Dow Jones Industrial
Performance |
| Timeline |
02378MAA9 and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
AAL 35 15 FEB 32
Pair trading matchups for 02378MAA9
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with 02378MAA9 and Dow Jones
The main advantage of trading using opposite 02378MAA9 and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 02378MAA9 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.| 02378MAA9 vs. Fast Retailing Co | 02378MAA9 vs. Tradeweb Markets | 02378MAA9 vs. Apogee Therapeutics, Common | 02378MAA9 vs. Lululemon Athletica |
| Dow Jones vs. Eastern Co | Dow Jones vs. Uber Technologies | Dow Jones vs. AKITA Drilling | Dow Jones vs. Chemours 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |