Correlation Between 743315AJ2 and Dow Jones
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By analyzing existing cross correlation between PROGRESSIVE P OH and Dow Jones Industrial, you can compare the effects of market volatilities on 743315AJ2 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 743315AJ2 with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of 743315AJ2 and Dow Jones.
Diversification Opportunities for 743315AJ2 and Dow Jones
Very good diversification
The 3 months correlation between 743315AJ2 and Dow is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding PROGRESSIVE P OH 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 743315AJ2 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 PROGRESSIVE P OH 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 743315AJ2 i.e., 743315AJ2 and Dow Jones go up and down completely randomly.
Pair Corralation between 743315AJ2 and Dow Jones
Assuming the 90 days trading horizon PROGRESSIVE P OH is expected to generate 72.77 times more return on investment than Dow Jones. However, 743315AJ2 is 72.77 times more volatile than Dow Jones Industrial. It trades about 0.05 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 11,224 in PROGRESSIVE P OH on September 3, 2024 and sell it today you would lose (166.00) from holding PROGRESSIVE P OH or give up 1.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 74.14% |
| Values | Daily Returns |
PROGRESSIVE P OH vs. Dow Jones Industrial
Performance |
| Timeline |
743315AJ2 and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
PROGRESSIVE P OH
Pair trading matchups for 743315AJ2
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with 743315AJ2 and Dow Jones
The main advantage of trading using opposite 743315AJ2 and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 743315AJ2 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.| 743315AJ2 vs. Boyd Gaming | 743315AJ2 vs. Sensient Technologies | 743315AJ2 vs. Stepan Company | 743315AJ2 vs. Dominos Pizza |
| Dow Jones vs. Eastern Co | Dow Jones vs. Uber Technologies | Dow Jones vs. AKITA Drilling | Dow Jones vs. Chemours 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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