Correlation Between BAXTER and Dow Jones
Specify exactly 2 symbols:
By analyzing existing cross correlation between BAXTER INTL INC and Dow Jones Industrial, you can compare the effects of market volatilities on BAXTER 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 BAXTER with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of BAXTER and Dow Jones.
Diversification Opportunities for BAXTER and Dow Jones
Excellent diversification
The 3 months correlation between BAXTER and Dow is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding BAXTER INTL INC 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 BAXTER 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 BAXTER INTL INC 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 BAXTER i.e., BAXTER and Dow Jones go up and down completely randomly.
Pair Corralation between BAXTER and Dow Jones
Assuming the 90 days trading horizon BAXTER INTL INC is expected to under-perform the Dow Jones. But the bond apears to be less risky and, when comparing its historical volatility, BAXTER INTL INC is 1.57 times less risky than Dow Jones. The bond trades about -0.03 of its potential returns per unit of risk. The Dow Jones Industrial is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 3,885,227 in Dow Jones Industrial on September 3, 2024 and sell it today you would earn a total of 605,838 from holding Dow Jones Industrial or generate 15.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.21% |
| Values | Daily Returns |
BAXTER INTL INC vs. Dow Jones Industrial
Performance |
| Timeline |
BAXTER and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
BAXTER INTL INC
Pair trading matchups for BAXTER
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with BAXTER and Dow Jones
The main advantage of trading using opposite BAXTER and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BAXTER 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.The idea behind BAXTER INTL INC and Dow Jones Industrial pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Dow Jones vs. Eastern Co | Dow Jones vs. Uber Technologies | Dow Jones vs. AKITA Drilling | Dow Jones vs. Chemours 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |