Correlation Between 26875PAP6 and Dow Jones
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By analyzing existing cross correlation between EOG RES INC and Dow Jones Industrial, you can compare the effects of market volatilities on 26875PAP6 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 26875PAP6 with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of 26875PAP6 and Dow Jones.
Diversification Opportunities for 26875PAP6 and Dow Jones
Pay attention - limited upside
The 3 months correlation between 26875PAP6 and Dow is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding EOG RES 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 26875PAP6 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 EOG RES 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 26875PAP6 i.e., 26875PAP6 and Dow Jones go up and down completely randomly.
Pair Corralation between 26875PAP6 and Dow Jones
Assuming the 90 days trading horizon 26875PAP6 is expected to generate 98.18 times less return on investment than Dow Jones. But when comparing it to its historical volatility, EOG RES INC is 9.3 times less risky than Dow Jones. It trades about 0.03 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 4,214,154 in Dow Jones Industrial on August 31, 2024 and sell it today you would earn a total of 258,052 from holding Dow Jones Industrial or generate 6.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
EOG RES INC vs. Dow Jones Industrial
Performance |
| Timeline |
26875PAP6 and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
EOG RES INC
Pair trading matchups for 26875PAP6
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with 26875PAP6 and Dow Jones
The main advantage of trading using opposite 26875PAP6 and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 26875PAP6 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.| 26875PAP6 vs. AEP TEX INC | 26875PAP6 vs. US BANK NATIONAL | 26875PAP6 vs. Bank of America | 26875PAP6 vs. GE Aerospace |
| 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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