Correlation Between 025537AU5 and Dow Jones
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By analyzing existing cross correlation between AEP 3875 15 FEB 62 and Dow Jones Industrial, you can compare the effects of market volatilities on 025537AU5 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 025537AU5 with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of 025537AU5 and Dow Jones.
Diversification Opportunities for 025537AU5 and Dow Jones
Excellent diversification
The 3 months correlation between 025537AU5 and Dow is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding AEP 3875 15 FEB 62 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 025537AU5 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 3875 15 FEB 62 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 025537AU5 i.e., 025537AU5 and Dow Jones go up and down completely randomly.
Pair Corralation between 025537AU5 and Dow Jones
Assuming the 90 days trading horizon AEP 3875 15 FEB 62 is expected to under-perform the Dow Jones. In addition to that, 025537AU5 is 5.36 times more volatile than Dow Jones Industrial. It trades about -0.3 of its total potential returns per unit of risk. Dow Jones Industrial is currently generating about -0.01 per unit of volatility. If you would invest 4,429,313 in Dow Jones Industrial on September 12, 2024 and sell it today you would lose (4,530) from holding Dow Jones Industrial or give up 0.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 85.71% |
| Values | Daily Returns |
AEP 3875 15 FEB 62 vs. Dow Jones Industrial
Performance |
| Timeline |
025537AU5 and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
AEP 3875 15 FEB 62
Pair trading matchups for 025537AU5
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with 025537AU5 and Dow Jones
The main advantage of trading using opposite 025537AU5 and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 025537AU5 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.| 025537AU5 vs. AEP TEX INC | 025537AU5 vs. US BANK NATIONAL | 025537AU5 vs. Alphabet Inc Class C | 025537AU5 vs. InMode |
| Dow Jones vs. Aeye Inc | Dow Jones vs. Gentex | Dow Jones vs. Marine Products | Dow Jones vs. CarsalesCom Ltd ADR |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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