Correlation Between 031162DM9 and Dow Jones
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By analyzing existing cross correlation between AMGN 525 02 MAR 25 and Dow Jones Industrial, you can compare the effects of market volatilities on 031162DM9 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 031162DM9 with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of 031162DM9 and Dow Jones.
Diversification Opportunities for 031162DM9 and Dow Jones
Very good diversification
The 3 months correlation between 031162DM9 and Dow is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding AMGN 525 02 MAR 25 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 031162DM9 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 AMGN 525 02 MAR 25 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 031162DM9 i.e., 031162DM9 and Dow Jones go up and down completely randomly.
Pair Corralation between 031162DM9 and Dow Jones
Assuming the 90 days trading horizon 031162DM9 is expected to generate 84.3 times less return on investment than Dow Jones. But when comparing it to its historical volatility, AMGN 525 02 MAR 25 is 5.5 times less risky than Dow Jones. It trades about 0.01 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 3,464,197 in Dow Jones Industrial on August 29, 2024 and sell it today you would earn a total of 1,008,009 from holding Dow Jones Industrial or generate 29.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.72% |
| Values | Daily Returns |
AMGN 525 02 MAR 25 vs. Dow Jones Industrial
Performance |
| Timeline |
031162DM9 and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
AMGN 525 02 MAR 25
Pair trading matchups for 031162DM9
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with 031162DM9 and Dow Jones
The main advantage of trading using opposite 031162DM9 and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 031162DM9 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.| 031162DM9 vs. Sensient Technologies | 031162DM9 vs. Codexis | 031162DM9 vs. Avient Corp | 031162DM9 vs. CF Industries Holdings |
| Dow Jones vs. Kaltura | Dow Jones vs. Artisan Partners Asset | Dow Jones vs. US Global Investors | Dow Jones vs. Analog Devices |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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