Correlation Between CONSTELLATION and Dow Jones
Specify exactly 2 symbols:
By analyzing existing cross correlation between CONSTELLATION BRANDS INC and Dow Jones Industrial, you can compare the effects of market volatilities on CONSTELLATION 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 CONSTELLATION with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of CONSTELLATION and Dow Jones.
Diversification Opportunities for CONSTELLATION and Dow Jones
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CONSTELLATION and Dow is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding CONSTELLATION BRANDS 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 CONSTELLATION 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 CONSTELLATION BRANDS 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 CONSTELLATION i.e., CONSTELLATION and Dow Jones go up and down completely randomly.
Pair Corralation between CONSTELLATION and Dow Jones
Assuming the 90 days trading horizon CONSTELLATION is expected to generate 1.11 times less return on investment than Dow Jones. In addition to that, CONSTELLATION is 4.53 times more volatile than Dow Jones Industrial. It trades about 0.05 of its total potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.26 per unit of volatility. If you would invest 4,238,757 in Dow Jones Industrial on August 28, 2024 and sell it today you would earn a total of 234,900 from holding Dow Jones Industrial or generate 5.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 71.43% |
| Values | Daily Returns |
CONSTELLATION BRANDS INC vs. Dow Jones Industrial
Performance |
| Timeline |
CONSTELLATION and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
CONSTELLATION BRANDS INC
Pair trading matchups for CONSTELLATION
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with CONSTELLATION and Dow Jones
The main advantage of trading using opposite CONSTELLATION and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CONSTELLATION 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.| CONSTELLATION vs. The Coca Cola | CONSTELLATION vs. JPMorgan Chase Co | CONSTELLATION vs. Dupont De Nemours | CONSTELLATION vs. Alcoa Corp |
| Dow Jones vs. Meiwu Technology Co | Dow Jones vs. 17 Education Technology | Dow Jones vs. 51Talk Online Education | Dow Jones vs. Afya |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |