Correlation Between VULCAN and Dow Jones
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By analyzing existing cross correlation between VULCAN MATLS 47 and Dow Jones Industrial, you can compare the effects of market volatilities on VULCAN 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 VULCAN with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of VULCAN and Dow Jones.
Diversification Opportunities for VULCAN and Dow Jones
Average diversification
The 3 months correlation between VULCAN and Dow is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding VULCAN MATLS 47 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 VULCAN 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 VULCAN MATLS 47 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 VULCAN i.e., VULCAN and Dow Jones go up and down completely randomly.
Pair Corralation between VULCAN and Dow Jones
Assuming the 90 days trading horizon VULCAN MATLS 47 is expected to under-perform the Dow Jones. In addition to that, VULCAN is 1.63 times more volatile than Dow Jones Industrial. It trades about -0.11 of its total potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.18 per unit of volatility. If you would invest 4,109,142 in Dow Jones Industrial on August 28, 2024 and sell it today you would earn a total of 376,889 from holding Dow Jones Industrial or generate 9.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 40.63% |
| Values | Daily Returns |
VULCAN MATLS 47 vs. Dow Jones Industrial
Performance |
| Timeline |
VULCAN and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
VULCAN MATLS 47
Pair trading matchups for VULCAN
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with VULCAN and Dow Jones
The main advantage of trading using opposite VULCAN and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VULCAN 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.| VULCAN vs. The Coca Cola | VULCAN vs. JPMorgan Chase Co | VULCAN vs. Dupont De Nemours | VULCAN vs. Alcoa Corp |
| 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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