Correlation Between 05581LAA7 and Dow Jones
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By analyzing existing cross correlation between BNP 4375 28 SEP 25 and Dow Jones Industrial, you can compare the effects of market volatilities on 05581LAA7 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 05581LAA7 with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of 05581LAA7 and Dow Jones.
Diversification Opportunities for 05581LAA7 and Dow Jones
Good diversification
The 3 months correlation between 05581LAA7 and Dow is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding BNP 4375 28 SEP 25 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 05581LAA7 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 BNP 4375 28 SEP 25 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 05581LAA7 i.e., 05581LAA7 and Dow Jones go up and down completely randomly.
Pair Corralation between 05581LAA7 and Dow Jones
Assuming the 90 days trading horizon BNP 4375 28 SEP 25 is expected to under-perform the Dow Jones. But the bond apears to be less risky and, when comparing its historical volatility, BNP 4375 28 SEP 25 is 1.17 times less risky than Dow Jones. The bond trades about -0.24 of its potential returns per unit of risk. The Dow Jones Industrial is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 4,214,154 in Dow Jones Industrial on August 31, 2024 and sell it today you would earn a total of 258,052 from holding Dow Jones Industrial or generate 6.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 59.09% |
| Values | Daily Returns |
BNP 4375 28 SEP 25 vs. Dow Jones Industrial
Performance |
| Timeline |
05581LAA7 and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
BNP 4375 28 SEP 25
Pair trading matchups for 05581LAA7
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with 05581LAA7 and Dow Jones
The main advantage of trading using opposite 05581LAA7 and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 05581LAA7 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.| 05581LAA7 vs. Asure Software | 05581LAA7 vs. JBG SMITH Properties | 05581LAA7 vs. Weyco Group | 05581LAA7 vs. Datadog |
| Dow Jones vs. Aerofoam Metals | Dow Jones vs. ACG Metals Limited | Dow Jones vs. China Clean Energy | Dow Jones vs. Fast Retailing Co |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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