Correlation Between 09261BAD2 and Dow Jones
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By analyzing existing cross correlation between BX 2 30 JAN 32 and Dow Jones Industrial, you can compare the effects of market volatilities on 09261BAD2 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 09261BAD2 with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of 09261BAD2 and Dow Jones.
Diversification Opportunities for 09261BAD2 and Dow Jones
Good diversification
The 3 months correlation between 09261BAD2 and Dow is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding BX 2 30 JAN 32 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 09261BAD2 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 BX 2 30 JAN 32 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 09261BAD2 i.e., 09261BAD2 and Dow Jones go up and down completely randomly.
Pair Corralation between 09261BAD2 and Dow Jones
Assuming the 90 days trading horizon BX 2 30 JAN 32 is expected to under-perform the Dow Jones. In addition to that, 09261BAD2 is 3.84 times more volatile than Dow Jones Industrial. It trades about -0.23 of its total potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.2 per unit of volatility. If you would invest 4,348,783 in Dow Jones Industrial on November 18, 2024 and sell it today you would earn a total of 105,825 from holding Dow Jones Industrial or generate 2.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 71.43% |
| Values | Daily Returns |
BX 2 30 JAN 32 vs. Dow Jones Industrial
Performance |
| Timeline |
09261BAD2 and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
BX 2 30 JAN 32
Pair trading matchups for 09261BAD2
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with 09261BAD2 and Dow Jones
The main advantage of trading using opposite 09261BAD2 and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 09261BAD2 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.| 09261BAD2 vs. Porvair plc | 09261BAD2 vs. Air Lease | 09261BAD2 vs. Montauk Renewables | 09261BAD2 vs. Finnair Oyj |
| Dow Jones vs. Palomar Holdings | Dow Jones vs. Mesa Air Group | Dow Jones vs. LATAM Airlines Group | Dow Jones vs. Unum 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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