Correlation Between CELARA and Dow Jones
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By analyzing existing cross correlation between CELARA 3875 02 NOV 27 and Dow Jones Industrial, you can compare the effects of market volatilities on CELARA 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 CELARA with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of CELARA and Dow Jones.
Diversification Opportunities for CELARA and Dow Jones
Significant diversification
The 3 months correlation between CELARA and Dow is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding CELARA 3875 02 NOV 27 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 CELARA 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 CELARA 3875 02 NOV 27 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 CELARA i.e., CELARA and Dow Jones go up and down completely randomly.
Pair Corralation between CELARA and Dow Jones
Assuming the 90 days trading horizon CELARA is expected to generate 26.22 times less return on investment than Dow Jones. But when comparing it to its historical volatility, CELARA 3875 02 NOV 27 is 1.15 times less risky than Dow Jones. It trades about 0.01 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 3,868,632 in Dow Jones Industrial on August 29, 2024 and sell it today you would earn a total of 603,574 from holding Dow Jones Industrial or generate 15.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 73.02% |
| Values | Daily Returns |
CELARA 3875 02 NOV 27 vs. Dow Jones Industrial
Performance |
| Timeline |
CELARA and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
CELARA 3875 02 NOV 27
Pair trading matchups for CELARA
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with CELARA and Dow Jones
The main advantage of trading using opposite CELARA and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CELARA 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.| CELARA vs. Olympic Steel | CELARA vs. Western Sierra Mining | CELARA vs. Allient | CELARA vs. Cardinal Health |
| Dow Jones vs. Kaltura | Dow Jones vs. Artisan Partners Asset | Dow Jones vs. US Global Investors | Dow Jones vs. Analog Devices |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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