Correlation Between UNITED and Dow Jones
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By analyzing existing cross correlation between UNITED PARCEL SVC and Dow Jones Industrial, you can compare the effects of market volatilities on UNITED 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 UNITED with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of UNITED and Dow Jones.
Diversification Opportunities for UNITED and Dow Jones
Pay attention - limited upside
The 3 months correlation between UNITED and Dow is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding UNITED PARCEL SVC 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 UNITED 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 UNITED PARCEL SVC 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 UNITED i.e., UNITED and Dow Jones go up and down completely randomly.
Pair Corralation between UNITED and Dow Jones
Assuming the 90 days trading horizon UNITED PARCEL SVC is expected to under-perform the Dow Jones. But the bond apears to be less risky and, when comparing its historical volatility, UNITED PARCEL SVC is 2.01 times less risky than Dow Jones. The bond trades about 0.0 of its potential returns per unit of risk. The Dow Jones Industrial is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 3,400,504 in Dow Jones Industrial on September 2, 2024 and sell it today you would earn a total of 1,090,561 from holding Dow Jones Industrial or generate 32.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.4% |
| Values | Daily Returns |
UNITED PARCEL SVC vs. Dow Jones Industrial
Performance |
| Timeline |
UNITED and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
UNITED PARCEL SVC
Pair trading matchups for UNITED
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with UNITED and Dow Jones
The main advantage of trading using opposite UNITED and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UNITED 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.| UNITED vs. Norfolk Southern | UNITED vs. Micron Technology | UNITED vs. Analog Devices | UNITED vs. Delek Logistics Partners |
| 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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