Correlation Between ANTHEM and Dow Jones
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By analyzing existing cross correlation between ANTHEM INC 455 and Dow Jones Industrial, you can compare the effects of market volatilities on ANTHEM 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 ANTHEM with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANTHEM and Dow Jones.
Diversification Opportunities for ANTHEM and Dow Jones
Very good diversification
The 3 months correlation between ANTHEM and Dow is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding ANTHEM INC 455 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 ANTHEM 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 ANTHEM INC 455 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 ANTHEM i.e., ANTHEM and Dow Jones go up and down completely randomly.
Pair Corralation between ANTHEM and Dow Jones
Assuming the 90 days trading horizon ANTHEM INC 455 is expected to under-perform the Dow Jones. In addition to that, ANTHEM is 1.73 times more volatile than Dow Jones Industrial. It trades about -0.01 of its total potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.18 per unit of volatility. If you would invest 4,109,142 in Dow Jones Industrial on August 28, 2024 and sell it today you would earn a total of 364,515 from holding Dow Jones Industrial or generate 8.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 74.6% |
| Values | Daily Returns |
ANTHEM INC 455 vs. Dow Jones Industrial
Performance |
| Timeline |
ANTHEM and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
ANTHEM INC 455
Pair trading matchups for ANTHEM
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with ANTHEM and Dow Jones
The main advantage of trading using opposite ANTHEM and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANTHEM 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.| ANTHEM vs. Texas Roadhouse | ANTHEM vs. Verra Mobility Corp | ANTHEM vs. Sun Country Airlines | ANTHEM vs. The Cheesecake Factory |
| Dow Jones vs. Meiwu Technology Co | Dow Jones vs. 17 Education Technology | Dow Jones vs. 51Talk Online Education | Dow Jones vs. Afya |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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