Correlation Between 539830BS7 and Dow Jones
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By analyzing existing cross correlation between LMT 415 15 JUN 53 and Dow Jones Industrial, you can compare the effects of market volatilities on 539830BS7 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 539830BS7 with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of 539830BS7 and Dow Jones.
Diversification Opportunities for 539830BS7 and Dow Jones
Excellent diversification
The 3 months correlation between 539830BS7 and Dow is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding LMT 415 15 JUN 53 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 539830BS7 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 LMT 415 15 JUN 53 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 539830BS7 i.e., 539830BS7 and Dow Jones go up and down completely randomly.
Pair Corralation between 539830BS7 and Dow Jones
Assuming the 90 days trading horizon 539830BS7 is expected to generate 3.44 times less return on investment than Dow Jones. In addition to that, 539830BS7 is 1.55 times more volatile than Dow Jones Industrial. It trades about 0.04 of its total potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.22 per unit of volatility. If you would invest 4,238,757 in Dow Jones Industrial on August 27, 2024 and sell it today you would earn a total of 190,894 from holding Dow Jones Industrial or generate 4.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
LMT 415 15 JUN 53 vs. Dow Jones Industrial
Performance |
| Timeline |
539830BS7 and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
LMT 415 15 JUN 53
Pair trading matchups for 539830BS7
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with 539830BS7 and Dow Jones
The main advantage of trading using opposite 539830BS7 and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 539830BS7 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.| 539830BS7 vs. AEP TEX INC | 539830BS7 vs. US BANK NATIONAL | 539830BS7 vs. 3M Company | 539830BS7 vs. Alcoa Corp |
| Dow Jones vs. MI Homes | Dow Jones vs. Franklin Street Properties | Dow Jones vs. Summit Hotel Properties | Dow Jones vs. Portillos |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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