Correlation Between Whirlpool and Dow Jones
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By analyzing existing cross correlation between Whirlpool of India and Dow Jones Industrial, you can compare the effects of market volatilities on Whirlpool 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 Whirlpool with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Whirlpool and Dow Jones.
Diversification Opportunities for Whirlpool and Dow Jones
Excellent diversification
The 3 months correlation between Whirlpool and Dow is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Whirlpool of India 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 Whirlpool 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 Whirlpool of India 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 Whirlpool i.e., Whirlpool and Dow Jones go up and down completely randomly.
Pair Corralation between Whirlpool and Dow Jones
Assuming the 90 days trading horizon Whirlpool of India is expected to under-perform the Dow Jones. In addition to that, Whirlpool is 2.9 times more volatile than Dow Jones Industrial. It trades about -0.1 of its total potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.34 per unit of volatility. If you would invest 4,179,460 in Dow Jones Industrial on September 5, 2024 and sell it today you would earn a total of 291,093 from holding Dow Jones Industrial or generate 6.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Whirlpool of India vs. Dow Jones Industrial
Performance |
| Timeline |
Whirlpool and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Whirlpool of India
Pair trading matchups for Whirlpool
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Whirlpool and Dow Jones
The main advantage of trading using opposite Whirlpool and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Whirlpool 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.| Whirlpool vs. Styrenix Performance Materials | Whirlpool vs. LLOYDS METALS AND | Whirlpool vs. Shyam Metalics and | Whirlpool vs. JGCHEMICALS LIMITED |
| Dow Jones vs. Shake Shack | Dow Jones vs. Artisan Partners Asset | Dow Jones vs. Dave Busters Entertainment | Dow Jones vs. Meli Hotels International |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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