Correlation Between Clavister Holding and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Clavister Holding 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 Clavister Holding and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Clavister Holding AB and Dow Jones Industrial, you can compare the effects of market volatilities on Clavister Holding 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 Clavister Holding with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clavister Holding and Dow Jones.
Diversification Opportunities for Clavister Holding and Dow Jones
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Clavister and Dow is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Clavister Holding AB 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 Clavister Holding 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 Clavister Holding AB 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 Clavister Holding i.e., Clavister Holding and Dow Jones go up and down completely randomly.
Pair Corralation between Clavister Holding and Dow Jones
Assuming the 90 days trading horizon Clavister Holding AB is expected to generate 5.64 times more return on investment than Dow Jones. However, Clavister Holding is 5.64 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 0.11 per unit of risk. If you would invest 163.00 in Clavister Holding AB on September 15, 2024 and sell it today you would earn a total of 37.00 from holding Clavister Holding AB or generate 22.7% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 98.46% |
Values | Daily Returns |
Clavister Holding AB vs. Dow Jones Industrial
Performance |
Timeline |
Clavister Holding and Dow Jones Volatility Contrast
Predicted Return Density |
Returns |
Clavister Holding AB
Pair trading matchups for Clavister Holding
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Clavister Holding and Dow Jones
The main advantage of trading using opposite Clavister Holding and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clavister Holding 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.Clavister Holding vs. BIMobject AB | Clavister Holding vs. Advenica AB | Clavister Holding vs. Crunchfish AB | Clavister Holding vs. Nexam Chemical Holding |
Dow Jones vs. Wallbox NV | Dow Jones vs. LithiumBank Resources Corp | Dow Jones vs. Marine Products | Dow Jones vs. Arrow Financial |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |