Correlation Between Aston Minerals and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Aston Minerals and Dow Jones at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Aston Minerals and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aston Minerals and Dow Jones Industrial, you can compare the effects of market volatilities on Aston Minerals 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 Aston Minerals with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aston Minerals and Dow Jones.
Diversification Opportunities for Aston Minerals and Dow Jones
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Aston and Dow is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Aston Minerals 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 Aston Minerals 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 Aston Minerals 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 Aston Minerals i.e., Aston Minerals and Dow Jones go up and down completely randomly.
Pair Corralation between Aston Minerals and Dow Jones
Assuming the 90 days horizon Aston Minerals is expected to generate 108.66 times more return on investment than Dow Jones. However, Aston Minerals is 108.66 times more volatile than Dow Jones Industrial. It trades about 0.1 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.1 per unit of risk. If you would invest 2.00 in Aston Minerals on August 29, 2024 and sell it today you would lose (1.25) from holding Aston Minerals or give up 62.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.52% |
| Values | Daily Returns |
Aston Minerals vs. Dow Jones Industrial
Performance |
| Timeline |
Aston Minerals and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Aston Minerals
Pair trading matchups for Aston Minerals
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Aston Minerals and Dow Jones
The main advantage of trading using opposite Aston Minerals and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aston Minerals 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.| Aston Minerals vs. Thunderstruck Resources | Aston Minerals vs. Tarku Resources | Aston Minerals vs. Eminent Gold Corp | Aston Minerals vs. Murchison Minerals |
| Dow Jones vs. Kaltura | Dow Jones vs. Artisan Partners Asset | Dow Jones vs. US Global Investors | Dow Jones vs. Analog Devices |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |