Correlation Between 12572QAH8 and Dow Jones
Specify exactly 2 symbols:
By analyzing existing cross correlation between CME GROUP INC and Dow Jones Industrial, you can compare the effects of market volatilities on 12572QAH8 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 12572QAH8 with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of 12572QAH8 and Dow Jones.
Diversification Opportunities for 12572QAH8 and Dow Jones
Average diversification
The 3 months correlation between 12572QAH8 and Dow is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding CME GROUP 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 12572QAH8 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 CME GROUP 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 12572QAH8 i.e., 12572QAH8 and Dow Jones go up and down completely randomly.
Pair Corralation between 12572QAH8 and Dow Jones
Assuming the 90 days trading horizon CME GROUP INC is expected to generate 102.05 times more return on investment than Dow Jones. However, 12572QAH8 is 102.05 times more volatile than Dow Jones Industrial. It trades about 0.06 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.12 per unit of risk. If you would invest 8,998 in CME GROUP INC on August 31, 2024 and sell it today you would lose (53.00) from holding CME GROUP INC or give up 0.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 57.22% |
| Values | Daily Returns |
CME GROUP INC vs. Dow Jones Industrial
Performance |
| Timeline |
12572QAH8 and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
CME GROUP INC
Pair trading matchups for 12572QAH8
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with 12572QAH8 and Dow Jones
The main advantage of trading using opposite 12572QAH8 and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 12572QAH8 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.| 12572QAH8 vs. AEP TEX INC | 12572QAH8 vs. US BANK NATIONAL | 12572QAH8 vs. American Express | 12572QAH8 vs. Chevron Corp |
| 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |