Correlation Between SUMIBK and Dow Jones
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By analyzing existing cross correlation between SUMIBK 5464 13 JAN 26 and Dow Jones Industrial, you can compare the effects of market volatilities on SUMIBK 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 SUMIBK with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of SUMIBK and Dow Jones.
Diversification Opportunities for SUMIBK and Dow Jones
Excellent diversification
The 3 months correlation between SUMIBK and Dow is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding SUMIBK 5464 13 JAN 26 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 SUMIBK 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 SUMIBK 5464 13 JAN 26 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 SUMIBK i.e., SUMIBK and Dow Jones go up and down completely randomly.
Pair Corralation between SUMIBK and Dow Jones
Assuming the 90 days trading horizon SUMIBK 5464 13 JAN 26 is expected to under-perform the Dow Jones. But the bond apears to be less risky and, when comparing its historical volatility, SUMIBK 5464 13 JAN 26 is 8.37 times less risky than Dow Jones. The bond trades about -0.26 of its potential returns per unit of risk. The Dow Jones Industrial is currently generating about 0.34 of returns per unit of risk over similar time horizon. If you would invest 4,205,219 in Dow Jones Industrial on September 2, 2024 and sell it today you would earn a total of 285,846 from holding Dow Jones Industrial or generate 6.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
SUMIBK 5464 13 JAN 26 vs. Dow Jones Industrial
Performance |
| Timeline |
SUMIBK and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
SUMIBK 5464 13 JAN 26
Pair trading matchups for SUMIBK
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with SUMIBK and Dow Jones
The main advantage of trading using opposite SUMIBK and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SUMIBK 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.| SUMIBK vs. Canlan Ice Sports | SUMIBK vs. RCS MediaGroup SpA | SUMIBK vs. Reservoir Media | SUMIBK vs. Lindblad Expeditions Holdings |
| Dow Jones vs. Dream Finders Homes | Dow Jones vs. GEN Restaurant Group, | Dow Jones vs. National Beverage Corp | Dow Jones vs. BJs Restaurants |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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