Correlation Between 42225UAD6 and Dana
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By analyzing existing cross correlation between HEALTHCARE TR AMER and Dana Inc, you can compare the effects of market volatilities on 42225UAD6 and Dana 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 42225UAD6 with a short position of Dana. Check out your portfolio center. Please also check ongoing floating volatility patterns of 42225UAD6 and Dana.
Diversification Opportunities for 42225UAD6 and Dana
Modest diversification
The 3 months correlation between 42225UAD6 and Dana is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding HEALTHCARE TR AMER and Dana Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dana Inc and 42225UAD6 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 HEALTHCARE TR AMER are associated (or correlated) with Dana. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dana Inc has no effect on the direction of 42225UAD6 i.e., 42225UAD6 and Dana go up and down completely randomly.
Pair Corralation between 42225UAD6 and Dana
Assuming the 90 days trading horizon HEALTHCARE TR AMER is expected to generate 0.09 times more return on investment than Dana. However, HEALTHCARE TR AMER is 10.6 times less risky than Dana. It trades about 0.0 of its potential returns per unit of risk. Dana Inc is currently generating about -0.06 per unit of risk. If you would invest 9,592 in HEALTHCARE TR AMER on September 3, 2024 and sell it today you would earn a total of 5.00 from holding HEALTHCARE TR AMER or generate 0.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 70.4% |
| Values | Daily Returns |
HEALTHCARE TR AMER vs. Dana Inc
Performance |
| Timeline |
| HEALTHCARE TR AMER |
| Dana Inc |
42225UAD6 and Dana Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 42225UAD6 and Dana
The main advantage of trading using opposite 42225UAD6 and Dana positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 42225UAD6 position performs unexpectedly, Dana 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 Dana will offset losses from the drop in Dana's long position.| 42225UAD6 vs. Dana Inc | 42225UAD6 vs. National Vision Holdings | 42225UAD6 vs. Lululemon Athletica | 42225UAD6 vs. Lucid 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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