Correlation Between Smurfit and Dow Jones
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By analyzing existing cross correlation between Smurfit Kappa Group and Dow Jones Industrial, you can compare the effects of market volatilities on Smurfit 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 Smurfit with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Smurfit and Dow Jones.
Diversification Opportunities for Smurfit and Dow Jones
Pay attention - limited upside
The 3 months correlation between Smurfit and Dow is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Smurfit Kappa Group 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 Smurfit 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 Smurfit Kappa Group 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 Smurfit i.e., Smurfit and Dow Jones go up and down completely randomly.
Pair Corralation between Smurfit and Dow Jones
If you would invest 4,109,677 in Dow Jones Industrial on September 12, 2024 and sell it today you would earn a total of 315,106 from holding Dow Jones Industrial or generate 7.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Smurfit Kappa Group vs. Dow Jones Industrial
Performance |
| Timeline |
Smurfit and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Smurfit Kappa Group
Pair trading matchups for Smurfit
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Smurfit and Dow Jones
The main advantage of trading using opposite Smurfit and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Smurfit 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.The idea behind Smurfit Kappa Group and Dow Jones Industrial pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Dow Jones vs. Aeye Inc | Dow Jones vs. Gentex | Dow Jones vs. Marine Products | Dow Jones vs. CarsalesCom Ltd ADR |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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