Correlation Between 842400HN6 and Dow Jones
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By analyzing existing cross correlation between EIX 345 01 FEB 52 and Dow Jones Industrial, you can compare the effects of market volatilities on 842400HN6 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 842400HN6 with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of 842400HN6 and Dow Jones.
Diversification Opportunities for 842400HN6 and Dow Jones
Weak diversification
The 3 months correlation between 842400HN6 and Dow is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding EIX 345 01 FEB 52 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 842400HN6 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 EIX 345 01 FEB 52 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 842400HN6 i.e., 842400HN6 and Dow Jones go up and down completely randomly.
Pair Corralation between 842400HN6 and Dow Jones
Assuming the 90 days trading horizon 842400HN6 is expected to generate 11.89 times less return on investment than Dow Jones. In addition to that, 842400HN6 is 1.47 times more volatile than Dow Jones Industrial. It trades about 0.01 of its total potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.13 per unit of volatility. If you would invest 3,624,787 in Dow Jones Industrial on September 3, 2024 and sell it today you would earn a total of 866,278 from holding Dow Jones Industrial or generate 23.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 72.06% |
| Values | Daily Returns |
EIX 345 01 FEB 52 vs. Dow Jones Industrial
Performance |
| Timeline |
842400HN6 and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
EIX 345 01 FEB 52
Pair trading matchups for 842400HN6
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with 842400HN6 and Dow Jones
The main advantage of trading using opposite 842400HN6 and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 842400HN6 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.| 842400HN6 vs. SunLink Health Systems | 842400HN6 vs. Meiwu Technology Co | 842400HN6 vs. Sellas Life Sciences | 842400HN6 vs. Titan Machinery |
| 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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