Correlation Between 62954HAY4 and Dow Jones
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By analyzing existing cross correlation between NXPI 34 01 MAY 30 and Dow Jones Industrial, you can compare the effects of market volatilities on 62954HAY4 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 62954HAY4 with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of 62954HAY4 and Dow Jones.
Diversification Opportunities for 62954HAY4 and Dow Jones
Pay attention - limited upside
The 3 months correlation between 62954HAY4 and Dow is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding NXPI 34 01 MAY 30 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 62954HAY4 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 NXPI 34 01 MAY 30 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 62954HAY4 i.e., 62954HAY4 and Dow Jones go up and down completely randomly.
Pair Corralation between 62954HAY4 and Dow Jones
Assuming the 90 days trading horizon NXPI 34 01 MAY 30 is expected to under-perform the Dow Jones. But the bond apears to be less risky and, when comparing its historical volatility, NXPI 34 01 MAY 30 is 1.16 times less risky than Dow Jones. The bond trades about -0.05 of its potential returns per unit of risk. The Dow Jones Industrial is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 3,857,103 in Dow Jones Industrial on September 1, 2024 and sell it today you would earn a total of 633,962 from holding Dow Jones Industrial or generate 16.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
NXPI 34 01 MAY 30 vs. Dow Jones Industrial
Performance |
| Timeline |
62954HAY4 and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
NXPI 34 01 MAY 30
Pair trading matchups for 62954HAY4
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with 62954HAY4 and Dow Jones
The main advantage of trading using opposite 62954HAY4 and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 62954HAY4 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.| 62954HAY4 vs. The Joint Corp | 62954HAY4 vs. Jabil Circuit | 62954HAY4 vs. KVH Industries | 62954HAY4 vs. Catalent |
| 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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