Correlation Between UNILEVER and Dow Jones
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By analyzing existing cross correlation between UNILEVER CAP P and Dow Jones Industrial, you can compare the effects of market volatilities on UNILEVER 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 UNILEVER with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of UNILEVER and Dow Jones.
Diversification Opportunities for UNILEVER and Dow Jones
Pay attention - limited upside
The 3 months correlation between UNILEVER and Dow is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding UNILEVER CAP P 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 UNILEVER 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 UNILEVER CAP P 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 UNILEVER i.e., UNILEVER and Dow Jones go up and down completely randomly.
Pair Corralation between UNILEVER and Dow Jones
Assuming the 90 days trading horizon UNILEVER CAP P is expected to under-perform the Dow Jones. But the bond apears to be less risky and, when comparing its historical volatility, UNILEVER CAP P is 1.82 times less risky than Dow Jones. The bond trades about -0.3 of its potential returns per unit of risk. The Dow Jones Industrial is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 4,238,757 in Dow Jones Industrial on August 28, 2024 and sell it today you would earn a total of 247,274 from holding Dow Jones Industrial or generate 5.83% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 63.64% |
Values | Daily Returns |
UNILEVER CAP P vs. Dow Jones Industrial
Performance |
Timeline |
UNILEVER and Dow Jones Volatility Contrast
Predicted Return Density |
Returns |
UNILEVER CAP P
Pair trading matchups for UNILEVER
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with UNILEVER and Dow Jones
The main advantage of trading using opposite UNILEVER and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UNILEVER 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.UNILEVER vs. Iridium Communications | UNILEVER vs. Magna International | UNILEVER vs. FDG Electric Vehicles | UNILEVER vs. PACCAR Inc |
Dow Jones vs. CECO Environmental Corp | Dow Jones vs. Western Acquisition Ventures | Dow Jones vs. Tyson Foods | Dow Jones vs. Inflection Point Acquisition |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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