Correlation Between 26442RAD3 and Dow Jones
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By analyzing existing cross correlation between DUKE ENERGY PROGRESS and Dow Jones Industrial, you can compare the effects of market volatilities on 26442RAD3 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 26442RAD3 with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of 26442RAD3 and Dow Jones.
Diversification Opportunities for 26442RAD3 and Dow Jones
Good diversification
The 3 months correlation between 26442RAD3 and Dow is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding DUKE ENERGY PROGRESS 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 26442RAD3 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 DUKE ENERGY PROGRESS 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 26442RAD3 i.e., 26442RAD3 and Dow Jones go up and down completely randomly.
Pair Corralation between 26442RAD3 and Dow Jones
Assuming the 90 days trading horizon DUKE ENERGY PROGRESS is expected to under-perform the Dow Jones. But the bond apears to be less risky and, when comparing its historical volatility, DUKE ENERGY PROGRESS is 1.25 times less risky than Dow Jones. The bond trades about -0.06 of its potential returns per unit of risk. The Dow Jones Industrial is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 4,251,495 in Dow Jones Industrial on August 24, 2024 and sell it today you would earn a total of 135,540 from holding Dow Jones Industrial or generate 3.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 78.26% |
| Values | Daily Returns |
DUKE ENERGY PROGRESS vs. Dow Jones Industrial
Performance |
| Timeline |
26442RAD3 and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
DUKE ENERGY PROGRESS
Pair trading matchups for 26442RAD3
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with 26442RAD3 and Dow Jones
The main advantage of trading using opposite 26442RAD3 and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 26442RAD3 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.| 26442RAD3 vs. Microbot Medical | 26442RAD3 vs. Getty Copper | 26442RAD3 vs. Reservoir Media | 26442RAD3 vs. Pinterest |
| Dow Jones vs. Sphere Entertainment Co | Dow Jones vs. Perseus Mining Limited | Dow Jones vs. Titan Machinery | Dow Jones vs. Simon Property 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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