Correlation Between 05565QDN5 and Dow Jones
Specify exactly 2 symbols:
By analyzing existing cross correlation between BP CAP MKTS and Dow Jones Industrial, you can compare the effects of market volatilities on 05565QDN5 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 05565QDN5 with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of 05565QDN5 and Dow Jones.
Diversification Opportunities for 05565QDN5 and Dow Jones
Excellent diversification
The 3 months correlation between 05565QDN5 and Dow is -0.69. 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 05565QDN5 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 05565QDN5 i.e., 05565QDN5 and Dow Jones go up and down completely randomly.
Pair Corralation between 05565QDN5 and Dow Jones
Assuming the 90 days trading horizon BP CAP MKTS is expected to under-perform the Dow Jones. But the bond apears to be less risky and, when comparing its historical volatility, BP CAP MKTS is 2.38 times less risky than Dow Jones. The bond trades about 0.0 of its potential returns per unit of risk. The Dow Jones Industrial is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 3,811,148 in Dow Jones Industrial on August 28, 2024 and sell it today you would earn a total of 662,509 from holding Dow Jones Industrial or generate 17.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
BP CAP MKTS vs. Dow Jones Industrial
Performance |
| Timeline |
05565QDN5 and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
BP CAP MKTS
Pair trading matchups for 05565QDN5
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with 05565QDN5 and Dow Jones
The main advantage of trading using opposite 05565QDN5 and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 05565QDN5 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.| 05565QDN5 vs. Semtech | 05565QDN5 vs. Allient | 05565QDN5 vs. Summit Materials | 05565QDN5 vs. Analog Devices |
| Dow Jones vs. CECO Environmental Corp | Dow Jones vs. Western Acquisition Ventures | Dow Jones vs. Tyson Foods | Dow Jones vs. Inflection Point Acquisition |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| CEOs Directory Screen CEOs from public companies around the world |