Correlation Between CONSOLIDATED and Dow Jones
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By analyzing existing cross correlation between CONSOLIDATED EDISON N and Dow Jones Industrial, you can compare the effects of market volatilities on CONSOLIDATED 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 CONSOLIDATED with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of CONSOLIDATED and Dow Jones.
Diversification Opportunities for CONSOLIDATED and Dow Jones
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CONSOLIDATED and Dow is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding CONSOLIDATED EDISON N 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 CONSOLIDATED 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 CONSOLIDATED EDISON N 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 CONSOLIDATED i.e., CONSOLIDATED and Dow Jones go up and down completely randomly.
Pair Corralation between CONSOLIDATED and Dow Jones
Assuming the 90 days trading horizon CONSOLIDATED EDISON N is expected to generate 73.0 times more return on investment than Dow Jones. However, CONSOLIDATED is 73.0 times more volatile than Dow Jones Industrial. It trades about 0.05 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.09 per unit of risk. If you would invest 8,182 in CONSOLIDATED EDISON N on August 31, 2024 and sell it today you would lose (429.00) from holding CONSOLIDATED EDISON N or give up 5.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 79.5% |
| Values | Daily Returns |
CONSOLIDATED EDISON N vs. Dow Jones Industrial
Performance |
| Timeline |
CONSOLIDATED and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
CONSOLIDATED EDISON N
Pair trading matchups for CONSOLIDATED
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with CONSOLIDATED and Dow Jones
The main advantage of trading using opposite CONSOLIDATED and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CONSOLIDATED 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.| CONSOLIDATED vs. AEP TEX INC | CONSOLIDATED vs. US BANK NATIONAL | CONSOLIDATED vs. International Business Machines | CONSOLIDATED vs. Intel |
| 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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