Correlation Between CSLAU and Dow Jones
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By analyzing existing cross correlation between CSLAU 4625 27 APR 42 and Dow Jones Industrial, you can compare the effects of market volatilities on CSLAU 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 CSLAU with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of CSLAU and Dow Jones.
Diversification Opportunities for CSLAU and Dow Jones
Significant diversification
The 3 months correlation between CSLAU and Dow is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding CSLAU 4625 27 APR 42 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 CSLAU 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 CSLAU 4625 27 APR 42 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 CSLAU i.e., CSLAU and Dow Jones go up and down completely randomly.
Pair Corralation between CSLAU and Dow Jones
Assuming the 90 days trading horizon CSLAU is expected to generate 2.11 times less return on investment than Dow Jones. In addition to that, CSLAU is 3.47 times more volatile than Dow Jones Industrial. It trades about 0.02 of its total potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.12 per unit of volatility. If you would invest 3,383,361 in Dow Jones Industrial on August 31, 2024 and sell it today you would earn a total of 1,107,704 from holding Dow Jones Industrial or generate 32.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 45.45% |
| Values | Daily Returns |
CSLAU 4625 27 APR 42 vs. Dow Jones Industrial
Performance |
| Timeline |
CSLAU and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
CSLAU 4625 27 APR 42
Pair trading matchups for CSLAU
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with CSLAU and Dow Jones
The main advantage of trading using opposite CSLAU and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CSLAU 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.| CSLAU vs. HE Equipment Services | CSLAU vs. Stepstone Group | CSLAU vs. Broadstone Net Lease | CSLAU vs. Morgan Stanley |
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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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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