Correlation Between 04010LAV5 and Dow Jones
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By analyzing existing cross correlation between ARES CAP P and Dow Jones Industrial, you can compare the effects of market volatilities on 04010LAV5 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 04010LAV5 with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of 04010LAV5 and Dow Jones.
Diversification Opportunities for 04010LAV5 and Dow Jones
Very good diversification
The 3 months correlation between 04010LAV5 and Dow is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding ARES CAP P 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 04010LAV5 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 ARES CAP P 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 04010LAV5 i.e., 04010LAV5 and Dow Jones go up and down completely randomly.
Pair Corralation between 04010LAV5 and Dow Jones
Assuming the 90 days trading horizon ARES CAP P is expected to under-perform the Dow Jones. But the bond apears to be less risky and, when comparing its historical volatility, ARES CAP P is 2.19 times less risky than Dow Jones. The bond trades about -0.09 of its potential returns per unit of risk. The Dow Jones Industrial is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 4,093,693 in Dow Jones Industrial on September 2, 2024 and sell it today you would earn a total of 397,372 from holding Dow Jones Industrial or generate 9.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.31% |
| Values | Daily Returns |
ARES CAP P vs. Dow Jones Industrial
Performance |
| Timeline |
04010LAV5 and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
ARES CAP P
Pair trading matchups for 04010LAV5
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with 04010LAV5 and Dow Jones
The main advantage of trading using opposite 04010LAV5 and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 04010LAV5 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.| 04010LAV5 vs. AEP TEX INC | 04010LAV5 vs. US BANK NATIONAL | 04010LAV5 vs. American Express | 04010LAV5 vs. Chevron Corp |
| Dow Jones vs. Dream Finders Homes | Dow Jones vs. GEN Restaurant Group, | Dow Jones vs. National Beverage Corp | Dow Jones vs. BJs Restaurants |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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