Correlation Between 225401AQ1 and Dow Jones
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By analyzing existing cross correlation between CS 2193 05 JUN 26 and Dow Jones Industrial, you can compare the effects of market volatilities on 225401AQ1 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 225401AQ1 with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of 225401AQ1 and Dow Jones.
Diversification Opportunities for 225401AQ1 and Dow Jones
Very good diversification
The 3 months correlation between 225401AQ1 and Dow is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding CS 2193 05 JUN 26 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 225401AQ1 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 CS 2193 05 JUN 26 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 225401AQ1 i.e., 225401AQ1 and Dow Jones go up and down completely randomly.
Pair Corralation between 225401AQ1 and Dow Jones
Assuming the 90 days trading horizon CS 2193 05 JUN 26 is expected to under-perform the Dow Jones. In addition to that, 225401AQ1 is 2.64 times more volatile than Dow Jones Industrial. It trades about -0.37 of its total potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.34 per unit of volatility. If you would invest 4,239,227 in Dow Jones Industrial on November 3, 2024 and sell it today you would earn a total of 215,239 from holding Dow Jones Industrial or generate 5.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 60.0% |
| Values | Daily Returns |
CS 2193 05 JUN 26 vs. Dow Jones Industrial
Performance |
| Timeline |
225401AQ1 and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
CS 2193 05 JUN 26
Pair trading matchups for 225401AQ1
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with 225401AQ1 and Dow Jones
The main advantage of trading using opposite 225401AQ1 and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 225401AQ1 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.| 225401AQ1 vs. AEP TEX INC | 225401AQ1 vs. US BANK NATIONAL | 225401AQ1 vs. Reliance Global Group | 225401AQ1 vs. Bayerische Motoren Werke |
| Dow Jones vs. Cincinnati Financial | Dow Jones vs. Kellanova | Dow Jones vs. Acme United | Dow Jones vs. Procter Gamble |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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