Correlation Between 552953CD1 and Dow Jones
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By analyzing existing cross correlation between MGM Resorts International and Dow Jones Industrial, you can compare the effects of market volatilities on 552953CD1 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 552953CD1 with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of 552953CD1 and Dow Jones.
Diversification Opportunities for 552953CD1 and Dow Jones
Excellent diversification
The 3 months correlation between 552953CD1 and Dow is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding MGM Resorts International 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 552953CD1 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 MGM Resorts International 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 552953CD1 i.e., 552953CD1 and Dow Jones go up and down completely randomly.
Pair Corralation between 552953CD1 and Dow Jones
Assuming the 90 days trading horizon MGM Resorts International is expected to generate 63.47 times more return on investment than Dow Jones. However, 552953CD1 is 63.47 times more volatile than Dow Jones Industrial. It trades about 0.04 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.08 per unit of risk. If you would invest 9,295 in MGM Resorts International on August 30, 2024 and sell it today you would earn a total of 239.00 from holding MGM Resorts International or generate 2.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 96.57% |
| Values | Daily Returns |
MGM Resorts International vs. Dow Jones Industrial
Performance |
| Timeline |
552953CD1 and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
MGM Resorts International
Pair trading matchups for 552953CD1
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with 552953CD1 and Dow Jones
The main advantage of trading using opposite 552953CD1 and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 552953CD1 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.| 552953CD1 vs. AEP TEX INC | 552953CD1 vs. US BANK NATIONAL | 552953CD1 vs. Nasdaq Inc | 552953CD1 vs. Vertiv Holdings Co |
| Dow Jones vs. Kaltura | Dow Jones vs. Artisan Partners Asset | Dow Jones vs. US Global Investors | Dow Jones vs. Analog Devices |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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