Correlation Between TOTAL and Dow Jones
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By analyzing existing cross correlation between TOTAL CAPITAL INTERNATIONAL and Dow Jones Industrial, you can compare the effects of market volatilities on TOTAL 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 TOTAL with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of TOTAL and Dow Jones.
Diversification Opportunities for TOTAL and Dow Jones
Pay attention - limited upside
The 3 months correlation between TOTAL and Dow is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding TOTAL CAPITAL INTERNATIONAL 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 TOTAL 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 TOTAL CAPITAL INTERNATIONAL 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 TOTAL i.e., TOTAL and Dow Jones go up and down completely randomly.
Pair Corralation between TOTAL and Dow Jones
Assuming the 90 days trading horizon TOTAL is expected to generate 15.71 times less return on investment than Dow Jones. But when comparing it to its historical volatility, TOTAL CAPITAL INTERNATIONAL is 1.67 times less risky than Dow Jones. It trades about 0.01 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 3,464,197 in Dow Jones Industrial on August 27, 2024 and sell it today you would earn a total of 965,454 from holding Dow Jones Industrial or generate 27.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
TOTAL CAPITAL INTERNATIONAL vs. Dow Jones Industrial
Performance |
| Timeline |
TOTAL and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
TOTAL CAPITAL INTERNATIONAL
Pair trading matchups for TOTAL
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with TOTAL and Dow Jones
The main advantage of trading using opposite TOTAL and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TOTAL 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.| TOTAL vs. AEP TEX INC | TOTAL vs. US BANK NATIONAL | TOTAL vs. Eat Beyond Global | TOTAL vs. Charles Schwab Corp |
| Dow Jones vs. Meiwu Technology Co | Dow Jones vs. 17 Education Technology | Dow Jones vs. 51Talk Online Education | Dow Jones vs. Afya |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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