Correlation Between 444859BU5 and Dow Jones
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By analyzing existing cross correlation between HUM 575 01 MAR 28 and Dow Jones Industrial, you can compare the effects of market volatilities on 444859BU5 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 444859BU5 with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of 444859BU5 and Dow Jones.
Diversification Opportunities for 444859BU5 and Dow Jones
Excellent diversification
The 3 months correlation between 444859BU5 and Dow is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding HUM 575 01 MAR 28 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 444859BU5 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 HUM 575 01 MAR 28 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 444859BU5 i.e., 444859BU5 and Dow Jones go up and down completely randomly.
Pair Corralation between 444859BU5 and Dow Jones
Assuming the 90 days trading horizon 444859BU5 is expected to generate 25.55 times less return on investment than Dow Jones. But when comparing it to its historical volatility, HUM 575 01 MAR 28 is 1.31 times less risky than Dow Jones. It trades about 0.0 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 3,394,710 in Dow Jones Industrial on August 26, 2024 and sell it today you would earn a total of 1,034,941 from holding Dow Jones Industrial or generate 30.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 94.97% |
| Values | Daily Returns |
HUM 575 01 MAR 28 vs. Dow Jones Industrial
Performance |
| Timeline |
444859BU5 and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
HUM 575 01 MAR 28
Pair trading matchups for 444859BU5
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with 444859BU5 and Dow Jones
The main advantage of trading using opposite 444859BU5 and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 444859BU5 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.| 444859BU5 vs. AEP TEX INC | 444859BU5 vs. US BANK NATIONAL | 444859BU5 vs. 3M Company | 444859BU5 vs. Alcoa Corp |
| Dow Jones vs. Vistra Energy Corp | Dow Jones vs. Fluence Energy | Dow Jones vs. Old Republic International | Dow Jones vs. Empresa Distribuidora y |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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