Correlation Between 03740LAG7 and Dow Jones
Specify exactly 2 symbols:
By analyzing existing cross correlation between AON 535 28 FEB 33 and Dow Jones Industrial, you can compare the effects of market volatilities on 03740LAG7 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 03740LAG7 with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of 03740LAG7 and Dow Jones.
Diversification Opportunities for 03740LAG7 and Dow Jones
Weak diversification
The 3 months correlation between 03740LAG7 and Dow is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding AON 535 28 FEB 33 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 03740LAG7 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 535 28 FEB 33 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 03740LAG7 i.e., 03740LAG7 and Dow Jones go up and down completely randomly.
Pair Corralation between 03740LAG7 and Dow Jones
Assuming the 90 days trading horizon 03740LAG7 is expected to generate 4.27 times less return on investment than Dow Jones. But when comparing it to its historical volatility, AON 535 28 FEB 33 is 1.46 times less risky than Dow Jones. It trades about 0.03 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 3,845,908 in Dow Jones Industrial on November 7, 2024 and sell it today you would earn a total of 609,696 from holding Dow Jones Industrial or generate 15.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AON 535 28 FEB 33 vs. Dow Jones Industrial
Performance |
| Timeline |
03740LAG7 and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
AON 535 28 FEB 33
Pair trading matchups for 03740LAG7
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with 03740LAG7 and Dow Jones
The main advantage of trading using opposite 03740LAG7 and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 03740LAG7 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.| 03740LAG7 vs. Western Acquisition Ventures | 03740LAG7 vs. Perella Weinberg Partners | 03740LAG7 vs. Transcontinental Realty Investors | 03740LAG7 vs. Black Spade Acquisition |
| Dow Jones vs. Mako Mining Corp | Dow Jones vs. Reyna Silver Corp | Dow Jones vs. Perseus Mining Limited | Dow Jones vs. Trupanion |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |