Correlation Between 278642AF0 and Dow Jones
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By analyzing existing cross correlation between EBAY INC 4 and Dow Jones Industrial, you can compare the effects of market volatilities on 278642AF0 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 278642AF0 with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of 278642AF0 and Dow Jones.
Diversification Opportunities for 278642AF0 and Dow Jones
Pay attention - limited upside
The 3 months correlation between 278642AF0 and Dow is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding EBAY INC 4 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 278642AF0 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 EBAY INC 4 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 278642AF0 i.e., 278642AF0 and Dow Jones go up and down completely randomly.
Pair Corralation between 278642AF0 and Dow Jones
Assuming the 90 days trading horizon EBAY INC 4 is expected to generate 79.56 times more return on investment than Dow Jones. However, 278642AF0 is 79.56 times more volatile than Dow Jones Industrial. It trades about 0.05 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.12 per unit of risk. If you would invest 7,906 in EBAY INC 4 on September 1, 2024 and sell it today you would earn a total of 369.00 from holding EBAY INC 4 or generate 4.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 94.09% |
| Values | Daily Returns |
EBAY INC 4 vs. Dow Jones Industrial
Performance |
| Timeline |
278642AF0 and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
EBAY INC 4
Pair trading matchups for 278642AF0
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with 278642AF0 and Dow Jones
The main advantage of trading using opposite 278642AF0 and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 278642AF0 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.| 278642AF0 vs. Solstad Offshore ASA | 278642AF0 vs. Jutal Offshore Oil | 278642AF0 vs. Allegiant Travel | 278642AF0 vs. Mativ Holdings |
| Dow Jones vs. Catalyst Pharmaceuticals | Dow Jones vs. Sphere Entertainment Co | Dow Jones vs. National CineMedia | Dow Jones vs. Mink Therapeutics |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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