Correlation Between E Data and Dow Jones
Can any of the company-specific risk be diversified away by investing in both E Data 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 E Data and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between E Data Teknoloji Pazarlama and Dow Jones Industrial, you can compare the effects of market volatilities on E Data 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 E Data with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of E Data and Dow Jones.
Diversification Opportunities for E Data and Dow Jones
Pay attention - limited upside
The 3 months correlation between EDATA and Dow is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding E Data Teknoloji Pazarlama 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 E Data 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 E Data Teknoloji Pazarlama 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 E Data i.e., E Data and Dow Jones go up and down completely randomly.
Pair Corralation between E Data and Dow Jones
Assuming the 90 days trading horizon E Data Teknoloji Pazarlama is expected to under-perform the Dow Jones. In addition to that, E Data is 4.9 times more volatile than Dow Jones Industrial. It trades about -0.01 of its total potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.12 per unit of volatility. If you would invest 3,657,794 in Dow Jones Industrial on September 7, 2024 and sell it today you would earn a total of 818,777 from holding Dow Jones Industrial or generate 22.38% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 99.2% |
Values | Daily Returns |
E Data Teknoloji Pazarlama vs. Dow Jones Industrial
Performance |
Timeline |
E Data and Dow Jones Volatility Contrast
Predicted Return Density |
Returns |
E Data Teknoloji Pazarlama
Pair trading matchups for E Data
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with E Data and Dow Jones
The main advantage of trading using opposite E Data and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if E Data 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.E Data vs. Escort Teknoloji Yatirim | E Data vs. Brisa Bridgestone Sabanci | E Data vs. IZDEMIR Enerji Elektrik | E Data vs. Ege Gubre Sanayi |
Dow Jones vs. Parker Hannifin | Dow Jones vs. Cementos Pacasmayo SAA | Dow Jones vs. Live Ventures | Dow Jones vs. EMCOR Group |
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.
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