Correlation Between 03740LAD4 and Dow Jones
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By analyzing existing cross correlation between AON 285 28 MAY 27 and Dow Jones Industrial, you can compare the effects of market volatilities on 03740LAD4 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 03740LAD4 with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of 03740LAD4 and Dow Jones.
Diversification Opportunities for 03740LAD4 and Dow Jones
Excellent diversification
The 3 months correlation between 03740LAD4 and Dow is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding AON 285 28 MAY 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 03740LAD4 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 AON 285 28 MAY 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 03740LAD4 i.e., 03740LAD4 and Dow Jones go up and down completely randomly.
Pair Corralation between 03740LAD4 and Dow Jones
Assuming the 90 days trading horizon 03740LAD4 is expected to generate 10.85 times less return on investment than Dow Jones. But when comparing it to its historical volatility, AON 285 28 MAY 27 is 2.34 times less risky than Dow Jones. It trades about 0.02 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 3,387,678 in Dow Jones Industrial on September 1, 2024 and sell it today you would earn a total of 1,103,387 from holding Dow Jones Industrial or generate 32.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.12% |
| Values | Daily Returns |
AON 285 28 MAY 27 vs. Dow Jones Industrial
Performance |
| Timeline |
03740LAD4 and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
AON 285 28 MAY 27
Pair trading matchups for 03740LAD4
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with 03740LAD4 and Dow Jones
The main advantage of trading using opposite 03740LAD4 and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 03740LAD4 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.| 03740LAD4 vs. Aegean Airlines SA | 03740LAD4 vs. Western Digital | 03740LAD4 vs. Primoris Services | 03740LAD4 vs. American Airlines Group |
| Dow Jones vs. Catalyst Pharmaceuticals | Dow Jones vs. Sphere Entertainment Co | Dow Jones vs. National CineMedia | Dow Jones vs. Mink Therapeutics |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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