Correlation Between LLOYDS and Dow Jones
Specify exactly 2 symbols:
By analyzing existing cross correlation between LLOYDS 5871 06 MAR 29 and Dow Jones Industrial, you can compare the effects of market volatilities on LLOYDS 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 LLOYDS with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of LLOYDS and Dow Jones.
Diversification Opportunities for LLOYDS and Dow Jones
Excellent diversification
The 3 months correlation between LLOYDS and Dow is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding LLOYDS 5871 06 MAR 29 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 LLOYDS 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 LLOYDS 5871 06 MAR 29 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 LLOYDS i.e., LLOYDS and Dow Jones go up and down completely randomly.
Pair Corralation between LLOYDS and Dow Jones
Assuming the 90 days trading horizon LLOYDS is expected to generate 6.24 times less return on investment than Dow Jones. But when comparing it to its historical volatility, LLOYDS 5871 06 MAR 29 is 2.93 times less risky than Dow Jones. It trades about 0.17 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.37 of returns per unit of risk over similar time horizon. If you would invest 4,176,346 in Dow Jones Industrial on September 1, 2024 and sell it today you would earn a total of 314,719 from holding Dow Jones Industrial or generate 7.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
LLOYDS 5871 06 MAR 29 vs. Dow Jones Industrial
Performance |
| Timeline |
LLOYDS and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
LLOYDS 5871 06 MAR 29
Pair trading matchups for LLOYDS
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with LLOYDS and Dow Jones
The main advantage of trading using opposite LLOYDS and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LLOYDS 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.The idea behind LLOYDS 5871 06 MAR 29 and Dow Jones Industrial pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Dow Jones vs. Catalyst Pharmaceuticals | Dow Jones vs. Sphere Entertainment Co | Dow Jones vs. National CineMedia | Dow Jones vs. Mink Therapeutics |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Stocks Directory Find actively traded stocks across global markets | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |