Correlation Between Murphy and Dow Jones
Specify exactly 2 symbols:
By analyzing existing cross correlation between Murphy Oil Corp and Dow Jones Industrial, you can compare the effects of market volatilities on Murphy 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 Murphy with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Murphy and Dow Jones.
Diversification Opportunities for Murphy and Dow Jones
Very good diversification
The 3 months correlation between Murphy and Dow is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Murphy Oil Corp 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 Murphy 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 Murphy Oil Corp 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 Murphy i.e., Murphy and Dow Jones go up and down completely randomly.
Pair Corralation between Murphy and Dow Jones
Assuming the 90 days trading horizon Murphy Oil Corp is expected to under-perform the Dow Jones. But the bond apears to be less risky and, when comparing its historical volatility, Murphy Oil Corp is 1.17 times less risky than Dow Jones. The bond trades about -0.1 of its potential returns per unit of risk. The Dow Jones Industrial is currently generating about 0.29 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 258,052 from holding Dow Jones Industrial or generate 6.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Murphy Oil Corp vs. Dow Jones Industrial
Performance |
| Timeline |
Murphy and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Murphy Oil Corp
Pair trading matchups for Murphy
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Murphy and Dow Jones
The main advantage of trading using opposite Murphy and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Murphy 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.| Murphy vs. Rumble Inc | Murphy vs. Sapiens International | Murphy vs. Rackspace Technology | Murphy vs. The Joint Corp |
| 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |