Correlation Between 90345WAD6 and Dow Jones
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By analyzing existing cross correlation between AAL 4625 03 JUN 25 and Dow Jones Industrial, you can compare the effects of market volatilities on 90345WAD6 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 90345WAD6 with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of 90345WAD6 and Dow Jones.
Diversification Opportunities for 90345WAD6 and Dow Jones
Very good diversification
The 3 months correlation between 90345WAD6 and Dow is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding AAL 4625 03 JUN 25 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 90345WAD6 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 AAL 4625 03 JUN 25 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 90345WAD6 i.e., 90345WAD6 and Dow Jones go up and down completely randomly.
Pair Corralation between 90345WAD6 and Dow Jones
Assuming the 90 days trading horizon AAL 4625 03 JUN 25 is expected to under-perform the Dow Jones. In addition to that, 90345WAD6 is 4.75 times more volatile than Dow Jones Industrial. It trades about -0.06 of its total potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.2 per unit of volatility. If you would invest 4,093,693 in Dow Jones Industrial on September 3, 2024 and sell it today you would earn a total of 397,372 from holding Dow Jones Industrial or generate 9.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 26.56% |
| Values | Daily Returns |
AAL 4625 03 JUN 25 vs. Dow Jones Industrial
Performance |
| Timeline |
90345WAD6 and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
AAL 4625 03 JUN 25
Pair trading matchups for 90345WAD6
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with 90345WAD6 and Dow Jones
The main advantage of trading using opposite 90345WAD6 and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 90345WAD6 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.| 90345WAD6 vs. Aspen Insurance Holdings | 90345WAD6 vs. Sphere Entertainment Co | 90345WAD6 vs. Palomar Holdings | 90345WAD6 vs. Assurant |
| 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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