Correlation Between UNION and Dow Jones
Specify exactly 2 symbols:
By analyzing existing cross correlation between UNION ELEC 39 and Dow Jones Industrial, you can compare the effects of market volatilities on UNION 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 UNION with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of UNION and Dow Jones.
Diversification Opportunities for UNION and Dow Jones
Average diversification
The 3 months correlation between UNION and Dow is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding UNION ELEC 39 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 UNION 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 UNION ELEC 39 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 UNION i.e., UNION and Dow Jones go up and down completely randomly.
Pair Corralation between UNION and Dow Jones
Assuming the 90 days trading horizon UNION ELEC 39 is expected to generate 113.11 times more return on investment than Dow Jones. However, UNION is 113.11 times more volatile than Dow Jones Industrial. It trades about 0.07 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.08 per unit of risk. If you would invest 8,689 in UNION ELEC 39 on September 3, 2024 and sell it today you would earn a total of 47.00 from holding UNION ELEC 39 or generate 0.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 61.21% |
| Values | Daily Returns |
UNION ELEC 39 vs. Dow Jones Industrial
Performance |
| Timeline |
UNION and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
UNION ELEC 39
Pair trading matchups for UNION
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with UNION and Dow Jones
The main advantage of trading using opposite UNION and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UNION 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.| UNION vs. Playtika Holding Corp | UNION vs. Dave Busters Entertainment | UNION vs. Xponential Fitness | UNION vs. NL Industries |
| 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Stocks Directory Find actively traded stocks across global markets | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |