Correlation Between WILLIS and Dow Jones
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By analyzing existing cross correlation between WILLIS NORTH AMER and Dow Jones Industrial, you can compare the effects of market volatilities on WILLIS 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 WILLIS with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of WILLIS and Dow Jones.
Diversification Opportunities for WILLIS and Dow Jones
Excellent diversification
The 3 months correlation between WILLIS and Dow is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding WILLIS NORTH AMER 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 WILLIS 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 WILLIS NORTH AMER 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 WILLIS i.e., WILLIS and Dow Jones go up and down completely randomly.
Pair Corralation between WILLIS and Dow Jones
Assuming the 90 days trading horizon WILLIS NORTH AMER is expected to under-perform the Dow Jones. In addition to that, WILLIS is 1.49 times more volatile than Dow Jones Industrial. It trades about -0.03 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 2, 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 | Weak |
| Accuracy | 98.44% |
| Values | Daily Returns |
WILLIS NORTH AMER vs. Dow Jones Industrial
Performance |
| Timeline |
WILLIS and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
WILLIS NORTH AMER
Pair trading matchups for WILLIS
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with WILLIS and Dow Jones
The main advantage of trading using opposite WILLIS and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WILLIS 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.| WILLIS vs. Fomento Economico Mexicano | WILLIS vs. Anheuser Busch Inbev | WILLIS vs. Eldorado Gold Corp | WILLIS vs. Keurig Dr Pepper |
| 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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