Correlation Between PEMEX and Dow Jones
Specify exactly 2 symbols:
By analyzing existing cross correlation between PEMEX 875 02 JUN 29 and Dow Jones Industrial, you can compare the effects of market volatilities on PEMEX 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 PEMEX with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of PEMEX and Dow Jones.
Diversification Opportunities for PEMEX and Dow Jones
Modest diversification
The 3 months correlation between PEMEX and Dow is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding PEMEX 875 02 JUN 29 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 PEMEX 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 PEMEX 875 02 JUN 29 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 PEMEX i.e., PEMEX and Dow Jones go up and down completely randomly.
Pair Corralation between PEMEX and Dow Jones
Assuming the 90 days trading horizon PEMEX is expected to generate 2.85 times less return on investment than Dow Jones. In addition to that, PEMEX is 1.82 times more volatile than Dow Jones Industrial. It trades about 0.02 of its total potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.12 per unit of volatility. If you would invest 3,383,361 in Dow Jones Industrial on August 31, 2024 and sell it today you would earn a total of 1,107,704 from holding Dow Jones Industrial or generate 32.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.93% |
| Values | Daily Returns |
PEMEX 875 02 JUN 29 vs. Dow Jones Industrial
Performance |
| Timeline |
PEMEX and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
PEMEX 875 02 JUN 29
Pair trading matchups for PEMEX
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with PEMEX and Dow Jones
The main advantage of trading using opposite PEMEX and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PEMEX 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.| PEMEX vs. VirnetX Holding Corp | PEMEX vs. Origin Materials | PEMEX vs. Luxfer Holdings PLC | PEMEX vs. NL Industries |
| 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |