Correlation Between WHA UTILITIES and Dow Jones
Specify exactly 2 symbols:
By analyzing existing cross correlation between WHA UTILITIES AND and Dow Jones Industrial, you can compare the effects of market volatilities on WHA UTILITIES 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 WHA UTILITIES with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of WHA UTILITIES and Dow Jones.
Diversification Opportunities for WHA UTILITIES and Dow Jones
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between WHA and Dow is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding WHA UTILITIES AND 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 WHA UTILITIES 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 WHA UTILITIES AND 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 WHA UTILITIES i.e., WHA UTILITIES and Dow Jones go up and down completely randomly.
Pair Corralation between WHA UTILITIES and Dow Jones
Assuming the 90 days trading horizon WHA UTILITIES AND is expected to generate 3.49 times more return on investment than Dow Jones. However, WHA UTILITIES is 3.49 times more volatile than Dow Jones Industrial. It trades about 0.05 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.11 per unit of risk. If you would invest 357.00 in WHA UTILITIES AND on August 28, 2024 and sell it today you would earn a total of 137.00 from holding WHA UTILITIES AND or generate 38.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 96.33% |
| Values | Daily Returns |
WHA UTILITIES AND vs. Dow Jones Industrial
Performance |
| Timeline |
WHA UTILITIES and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
WHA UTILITIES AND
Pair trading matchups for WHA UTILITIES
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with WHA UTILITIES and Dow Jones
The main advantage of trading using opposite WHA UTILITIES and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WHA UTILITIES 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.The idea behind WHA UTILITIES AND and Dow Jones Industrial pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Stocks Directory Find actively traded stocks across global markets | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |