Correlation Between ACAFP and Dow Jones
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By analyzing existing cross correlation between ACAFP 475 and Dow Jones Industrial, you can compare the effects of market volatilities on ACAFP 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 ACAFP with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of ACAFP and Dow Jones.
Diversification Opportunities for ACAFP and Dow Jones
Good diversification
The 3 months correlation between ACAFP and Dow is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding ACAFP 475 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 ACAFP 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 ACAFP 475 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 ACAFP i.e., ACAFP and Dow Jones go up and down completely randomly.
Pair Corralation between ACAFP and Dow Jones
Assuming the 90 days trading horizon ACAFP 475 is expected to generate 0.5 times more return on investment than Dow Jones. However, ACAFP 475 is 1.99 times less risky than Dow Jones. It trades about 0.14 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about -0.21 per unit of risk. If you would invest 9,148 in ACAFP 475 on November 28, 2024 and sell it today you would earn a total of 40.00 from holding ACAFP 475 or generate 0.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 45.45% |
| Values | Daily Returns |
ACAFP 475 vs. Dow Jones Industrial
Performance |
| Timeline |
ACAFP and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
ACAFP 475
Pair trading matchups for ACAFP
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with ACAFP and Dow Jones
The main advantage of trading using opposite ACAFP and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ACAFP 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.| ACAFP vs. Delek Logistics Partners | ACAFP vs. Broadleaf Co | ACAFP vs. Sun Country Airlines | ACAFP vs. Chemours Co |
| Dow Jones vs. Starbucks | Dow Jones vs. Westinghouse Air Brake | Dow Jones vs. Finnair Oyj | Dow Jones vs. Mesa Air Group |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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