Correlation Between KROGER and Dow Jones
Specify exactly 2 symbols:
By analyzing existing cross correlation between KROGER 5 percent and Dow Jones Industrial, you can compare the effects of market volatilities on KROGER 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 KROGER with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of KROGER and Dow Jones.
Diversification Opportunities for KROGER and Dow Jones
Good diversification
The 3 months correlation between KROGER and Dow is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding KROGER 5 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 KROGER 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 KROGER 5 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 KROGER i.e., KROGER and Dow Jones go up and down completely randomly.
Pair Corralation between KROGER and Dow Jones
Assuming the 90 days trading horizon KROGER 5 percent is expected to under-perform the Dow Jones. But the bond apears to be less risky and, when comparing its historical volatility, KROGER 5 percent is 1.07 times less risky than Dow Jones. The bond trades about -0.22 of its potential returns per unit of risk. The Dow Jones Industrial is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest 4,214,154 in Dow Jones Industrial on August 31, 2024 and sell it today you would earn a total of 276,911 from holding Dow Jones Industrial or generate 6.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 52.17% |
| Values | Daily Returns |
KROGER 5 percent vs. Dow Jones Industrial
Performance |
| Timeline |
KROGER and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
KROGER 5 percent
Pair trading matchups for KROGER
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with KROGER and Dow Jones
The main advantage of trading using opposite KROGER and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KROGER 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.| KROGER vs. Cebu Air ADR | KROGER vs. Videolocity International | KROGER vs. Kite Realty Group | KROGER vs. Tencent Music Entertainment |
| 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |