Correlation Between MONDELEZ and Dow Jones
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By analyzing existing cross correlation between MONDELEZ INTERNATIONAL INC and Dow Jones Industrial, you can compare the effects of market volatilities on MONDELEZ 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 MONDELEZ with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of MONDELEZ and Dow Jones.
Diversification Opportunities for MONDELEZ and Dow Jones
Very good diversification
The 3 months correlation between MONDELEZ and Dow is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding MONDELEZ INTERNATIONAL INC 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 MONDELEZ 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 MONDELEZ INTERNATIONAL INC 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 MONDELEZ i.e., MONDELEZ and Dow Jones go up and down completely randomly.
Pair Corralation between MONDELEZ and Dow Jones
Assuming the 90 days trading horizon MONDELEZ INTERNATIONAL INC is expected to generate 3.1 times more return on investment than Dow Jones. However, MONDELEZ is 3.1 times more volatile than Dow Jones Industrial. It trades about 0.25 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.37 per unit of risk. If you would invest 6,112 in MONDELEZ INTERNATIONAL INC on September 1, 2024 and sell it today you would earn a total of 796.00 from holding MONDELEZ INTERNATIONAL INC or generate 13.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 85.71% |
| Values | Daily Returns |
MONDELEZ INTERNATIONAL INC vs. Dow Jones Industrial
Performance |
| Timeline |
MONDELEZ and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
MONDELEZ INTERNATIONAL INC
Pair trading matchups for MONDELEZ
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with MONDELEZ and Dow Jones
The main advantage of trading using opposite MONDELEZ and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MONDELEZ 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.| MONDELEZ vs. AEP TEX INC | MONDELEZ vs. US BANK NATIONAL | MONDELEZ vs. Bank of America | MONDELEZ vs. GE Aerospace |
| 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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