Correlation Between Acruence Active and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Acruence Active 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 Acruence Active and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Acruence Active Hedge and Dow Jones Industrial, you can compare the effects of market volatilities on Acruence Active 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 Acruence Active with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acruence Active and Dow Jones.
Diversification Opportunities for Acruence Active and Dow Jones
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Acruence and Dow is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Acruence Active Hedge 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 Acruence Active 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 Acruence Active Hedge 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 Acruence Active i.e., Acruence Active and Dow Jones go up and down completely randomly.
Pair Corralation between Acruence Active and Dow Jones
Given the investment horizon of 90 days Acruence Active Hedge is expected to generate 0.97 times more return on investment than Dow Jones. However, Acruence Active Hedge is 1.03 times less risky than Dow Jones. It trades about 0.47 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.24 per unit of risk. If you would invest 2,170 in Acruence Active Hedge on August 26, 2024 and sell it today you would earn a total of 217.00 from holding Acruence Active Hedge or generate 10.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Acruence Active Hedge vs. Dow Jones Industrial
Performance |
| Timeline |
Acruence Active and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Acruence Active Hedge
Pair trading matchups for Acruence Active
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Acruence Active and Dow Jones
The main advantage of trading using opposite Acruence Active and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Acruence Active 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.| Acruence Active vs. ZEGA Buy and | Acruence Active vs. Innovator Equity Accelerated | Acruence Active vs. Innovator SP 500 | Acruence Active vs. Innovator SP 500 |
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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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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