Correlation Between HERSHEY and Dow Jones
Specify exactly 2 symbols:
By analyzing existing cross correlation between HERSHEY 32 percent and Dow Jones Industrial, you can compare the effects of market volatilities on HERSHEY 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 HERSHEY with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of HERSHEY and Dow Jones.
Diversification Opportunities for HERSHEY and Dow Jones
Modest diversification
The 3 months correlation between HERSHEY and Dow is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding HERSHEY 32 percent 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 HERSHEY 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 HERSHEY 32 percent 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 HERSHEY i.e., HERSHEY and Dow Jones go up and down completely randomly.
Pair Corralation between HERSHEY and Dow Jones
Assuming the 90 days trading horizon HERSHEY is expected to generate 13.45 times less return on investment than Dow Jones. But when comparing it to its historical volatility, HERSHEY 32 percent is 1.96 times less risky than Dow Jones. It trades about 0.02 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 3,383,361 in Dow Jones Industrial on August 31, 2024 and sell it today you would earn a total of 1,107,704 from holding Dow Jones Industrial or generate 32.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 65.51% |
| Values | Daily Returns |
HERSHEY 32 percent vs. Dow Jones Industrial
Performance |
| Timeline |
HERSHEY and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
HERSHEY 32 percent
Pair trading matchups for HERSHEY
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with HERSHEY and Dow Jones
The main advantage of trading using opposite HERSHEY and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HERSHEY 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.| HERSHEY vs. AEP TEX INC | HERSHEY vs. US BANK NATIONAL | HERSHEY vs. Bank of America | HERSHEY 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |