Correlation Between CARRIER and Dow Jones
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By analyzing existing cross correlation between CARRIER GLOBAL P and Dow Jones Industrial, you can compare the effects of market volatilities on CARRIER 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 CARRIER with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of CARRIER and Dow Jones.
Diversification Opportunities for CARRIER and Dow Jones
Excellent diversification
The 3 months correlation between CARRIER and Dow is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding CARRIER GLOBAL P 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 CARRIER 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 CARRIER GLOBAL P 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 CARRIER i.e., CARRIER and Dow Jones go up and down completely randomly.
Pair Corralation between CARRIER and Dow Jones
Assuming the 90 days trading horizon CARRIER GLOBAL P is expected to generate 90.64 times more return on investment than Dow Jones. However, CARRIER is 90.64 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 0.08 per unit of risk. If you would invest 7,958 in CARRIER GLOBAL P on September 2, 2024 and sell it today you would lose (1,020) from holding CARRIER GLOBAL P or give up 12.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.36% |
| Values | Daily Returns |
CARRIER GLOBAL P vs. Dow Jones Industrial
Performance |
| Timeline |
CARRIER and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
CARRIER GLOBAL P
Pair trading matchups for CARRIER
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with CARRIER and Dow Jones
The main advantage of trading using opposite CARRIER and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CARRIER 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.| CARRIER vs. Playtika Holding Corp | CARRIER vs. Mind Technology | CARRIER vs. Playa Hotels Resorts | CARRIER vs. JD Sports Fashion |
| Dow Jones vs. Dream Finders Homes | Dow Jones vs. GEN Restaurant Group, | Dow Jones vs. National Beverage Corp | Dow Jones vs. BJs Restaurants |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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