Correlation Between FEDEX and Dow Jones
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By analyzing existing cross correlation between FEDEX P 475 and Dow Jones Industrial, you can compare the effects of market volatilities on FEDEX 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 FEDEX with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of FEDEX and Dow Jones.
Diversification Opportunities for FEDEX and Dow Jones
Excellent diversification
The 3 months correlation between FEDEX and Dow is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding FEDEX P 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 FEDEX 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 FEDEX P 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 FEDEX i.e., FEDEX and Dow Jones go up and down completely randomly.
Pair Corralation between FEDEX and Dow Jones
Assuming the 90 days trading horizon FEDEX P 475 is expected to generate 65.51 times more return on investment than Dow Jones. However, FEDEX is 65.51 times more volatile than Dow Jones Industrial. It trades about 0.04 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.08 per unit of risk. If you would invest 8,842 in FEDEX P 475 on August 30, 2024 and sell it today you would lose (31.00) from holding FEDEX P 475 or give up 0.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 90.71% |
| Values | Daily Returns |
FEDEX P 475 vs. Dow Jones Industrial
Performance |
| Timeline |
FEDEX and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
FEDEX P 475
Pair trading matchups for FEDEX
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with FEDEX and Dow Jones
The main advantage of trading using opposite FEDEX and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FEDEX 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.| FEDEX vs. Arrow Electronics | FEDEX vs. Nextnav Acquisition Corp | FEDEX vs. Lipocine | FEDEX vs. Red Branch Technologies |
| Dow Jones vs. Kaltura | Dow Jones vs. Artisan Partners Asset | Dow Jones vs. US Global Investors | Dow Jones vs. Analog Devices |
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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