Correlation Between STANLN and Dow Jones
Specify exactly 2 symbols:
By analyzing existing cross correlation between STANLN 7767 16 NOV 28 and Dow Jones Industrial, you can compare the effects of market volatilities on STANLN 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 STANLN with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of STANLN and Dow Jones.
Diversification Opportunities for STANLN and Dow Jones
Significant diversification
The 3 months correlation between STANLN and Dow is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding STANLN 7767 16 NOV 28 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 STANLN 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 STANLN 7767 16 NOV 28 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 STANLN i.e., STANLN and Dow Jones go up and down completely randomly.
Pair Corralation between STANLN and Dow Jones
Assuming the 90 days trading horizon STANLN 7767 16 NOV 28 is expected to under-perform the Dow Jones. In addition to that, STANLN is 1.65 times more volatile than Dow Jones Industrial. It trades about -0.31 of its total potential returns per unit of risk. Dow Jones Industrial is currently generating about -0.01 per unit of volatility. If you would invest 4,395,819 in Dow Jones Industrial on September 14, 2024 and sell it today you would lose (4,407) from holding Dow Jones Industrial or give up 0.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 47.62% |
| Values | Daily Returns |
STANLN 7767 16 NOV 28 vs. Dow Jones Industrial
Performance |
| Timeline |
STANLN and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
STANLN 7767 16 NOV 28
Pair trading matchups for STANLN
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with STANLN and Dow Jones
The main advantage of trading using opposite STANLN and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if STANLN 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 STANLN 7767 16 NOV 28 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. Hurco Companies | Dow Jones vs. Tyson Foods | Dow Jones vs. MYR Group | Dow Jones vs. Cannae Holdings |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |