Correlation Between Casing Macron and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Casing Macron 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 Casing Macron and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Casing Macron Technology and Dow Jones Industrial, you can compare the effects of market volatilities on Casing Macron 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 Casing Macron with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Casing Macron and Dow Jones.
Diversification Opportunities for Casing Macron and Dow Jones
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Casing and Dow is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Casing Macron Technology 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 Casing Macron 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 Casing Macron Technology 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 Casing Macron i.e., Casing Macron and Dow Jones go up and down completely randomly.
Pair Corralation between Casing Macron and Dow Jones
Assuming the 90 days trading horizon Casing Macron Technology is expected to under-perform the Dow Jones. In addition to that, Casing Macron is 3.26 times more volatile than Dow Jones Industrial. It trades about -0.08 of its total potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.02 per unit of volatility. If you would invest 4,206,336 in Dow Jones Industrial on September 20, 2024 and sell it today you would earn a total of 26,351 from holding Dow Jones Industrial or generate 0.63% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Casing Macron Technology vs. Dow Jones Industrial
Performance |
Timeline |
Casing Macron and Dow Jones Volatility Contrast
Predicted Return Density |
Returns |
Casing Macron Technology
Pair trading matchups for Casing Macron
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Casing Macron and Dow Jones
The main advantage of trading using opposite Casing Macron and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Casing Macron 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.Casing Macron vs. Niching Industrial | Casing Macron vs. Dimension Computer Technology | Casing Macron vs. Kworld Computer Co | Casing Macron vs. Ruentex Development Co |
Dow Jones vs. Digi International | Dow Jones vs. Grupo Televisa SAB | Dow Jones vs. United Microelectronics | Dow Jones vs. Weibo Corp |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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