Correlation Between Dow Jones and Sixt SE
Specify exactly 2 symbols:
By analyzing existing cross correlation between Dow Jones Industrial and Sixt SE, you can compare the effects of market volatilities on Dow Jones and Sixt SE 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 Dow Jones with a short position of Sixt SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and Sixt SE.
Diversification Opportunities for Dow Jones and Sixt SE
Modest diversification
The 3 months correlation between Dow and Sixt is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial and Sixt SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sixt SE and Dow Jones 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 Dow Jones Industrial are associated (or correlated) with Sixt SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sixt SE has no effect on the direction of Dow Jones i.e., Dow Jones and Sixt SE go up and down completely randomly.
Pair Corralation between Dow Jones and Sixt SE
Assuming the 90 days trading horizon Dow Jones is expected to generate 11.98 times less return on investment than Sixt SE. But when comparing it to its historical volatility, Dow Jones Industrial is 2.42 times less risky than Sixt SE. It trades about 0.03 of its potential returns per unit of risk. Sixt SE is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 6,335 in Sixt SE on September 24, 2024 and sell it today you would earn a total of 1,350 from holding Sixt SE or generate 21.31% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 98.46% |
Values | Daily Returns |
Dow Jones Industrial vs. Sixt SE
Performance |
Timeline |
Dow Jones and Sixt SE Volatility Contrast
Predicted Return Density |
Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
Sixt SE
Pair trading matchups for Sixt SE
Pair Trading with Dow Jones and Sixt SE
The main advantage of trading using opposite Dow Jones and Sixt SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones position performs unexpectedly, Sixt SE 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 Sixt SE will offset losses from the drop in Sixt SE's long position.Dow Jones vs. Teleflex Incorporated | Dow Jones vs. Sonida Senior Living | Dow Jones vs. Avadel Pharmaceuticals PLC | Dow Jones vs. Cardinal Health |
Sixt SE vs. Ashtead Group plc | Sixt SE vs. WillScot Mobile Mini | Sixt SE vs. Avis Budget Group | Sixt SE vs. Sixt SE |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |