Correlation Between 05565QDH8 and Dow Jones
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By analyzing existing cross correlation between BP CAP MKTS and Dow Jones Industrial, you can compare the effects of market volatilities on 05565QDH8 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 05565QDH8 with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of 05565QDH8 and Dow Jones.
Diversification Opportunities for 05565QDH8 and Dow Jones
Very weak diversification
The 3 months correlation between 05565QDH8 and Dow is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding BP CAP MKTS 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 05565QDH8 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 BP CAP MKTS 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 05565QDH8 i.e., 05565QDH8 and Dow Jones go up and down completely randomly.
Pair Corralation between 05565QDH8 and Dow Jones
Assuming the 90 days trading horizon BP CAP MKTS is expected to generate 0.33 times more return on investment than Dow Jones. However, BP CAP MKTS is 2.99 times less risky than Dow Jones. It trades about 0.17 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about -0.25 per unit of risk. If you would invest 9,644 in BP CAP MKTS on November 29, 2024 and sell it today you would earn a total of 72.00 from holding BP CAP MKTS or generate 0.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BP CAP MKTS vs. Dow Jones Industrial
Performance |
| Timeline |
05565QDH8 and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
BP CAP MKTS
Pair trading matchups for 05565QDH8
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with 05565QDH8 and Dow Jones
The main advantage of trading using opposite 05565QDH8 and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 05565QDH8 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.| 05565QDH8 vs. PepsiCo | 05565QDH8 vs. Crombie Real Estate | 05565QDH8 vs. Constellation Brands Class | 05565QDH8 vs. Ambev SA ADR |
| Dow Jones vs. Starbucks | Dow Jones vs. Westinghouse Air Brake | Dow Jones vs. Finnair Oyj | Dow Jones vs. Mesa Air Group |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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