Correlation Between Trend Etf and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Trend Etf 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 Trend Etf and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Trend Etf Ifix and Dow Jones Industrial, you can compare the effects of market volatilities on Trend Etf 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 Trend Etf with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Trend Etf and Dow Jones.
Diversification Opportunities for Trend Etf and Dow Jones
Pay attention - limited upside
The 3 months correlation between Trend and Dow is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding Trend Etf Ifix 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 Trend Etf 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 Trend Etf Ifix 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 Trend Etf i.e., Trend Etf and Dow Jones go up and down completely randomly.
Pair Corralation between Trend Etf and Dow Jones
Assuming the 90 days trading horizon Trend Etf Ifix is expected to under-perform the Dow Jones. But the etf apears to be less risky and, when comparing its historical volatility, Trend Etf Ifix is 2.41 times less risky than Dow Jones. The etf trades about -0.11 of its potential returns per unit of risk. The Dow Jones Industrial is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 4,238,757 in Dow Jones Industrial on August 27, 2024 and sell it today you would earn a total of 190,894 from holding Dow Jones Industrial or generate 4.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 90.48% |
| Values | Daily Returns |
Trend Etf Ifix vs. Dow Jones Industrial
Performance |
| Timeline |
Trend Etf and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Trend Etf Ifix
Pair trading matchups for Trend Etf
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Trend Etf and Dow Jones
The main advantage of trading using opposite Trend Etf and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Trend Etf 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.| Trend Etf vs. BTG Pactual Logstica | Trend Etf vs. Plano Plano Desenvolvimento | Trend Etf vs. Companhia Habitasul de | Trend Etf vs. The Procter Gamble |
| Dow Jones vs. Meiwu Technology Co | Dow Jones vs. 17 Education Technology | Dow Jones vs. 51Talk Online Education | Dow Jones vs. Afya |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |