Correlation Between 053807AV5 and Dow Jones
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By analyzing existing cross correlation between AVT 55 01 JUN 32 and Dow Jones Industrial, you can compare the effects of market volatilities on 053807AV5 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 053807AV5 with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of 053807AV5 and Dow Jones.
Diversification Opportunities for 053807AV5 and Dow Jones
Very good diversification
The 3 months correlation between 053807AV5 and Dow is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding AVT 55 01 JUN 32 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 053807AV5 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 AVT 55 01 JUN 32 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 053807AV5 i.e., 053807AV5 and Dow Jones go up and down completely randomly.
Pair Corralation between 053807AV5 and Dow Jones
Assuming the 90 days trading horizon AVT 55 01 JUN 32 is expected to under-perform the Dow Jones. But the bond apears to be less risky and, when comparing its historical volatility, AVT 55 01 JUN 32 is 1.34 times less risky than Dow Jones. The bond trades about -0.1 of its potential returns per unit of risk. The Dow Jones Industrial is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 4,220,822 in Dow Jones Industrial on September 24, 2024 and sell it today you would earn a total of 69,873 from holding Dow Jones Industrial or generate 1.66% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 95.38% |
Values | Daily Returns |
AVT 55 01 JUN 32 vs. Dow Jones Industrial
Performance |
Timeline |
053807AV5 and Dow Jones Volatility Contrast
Predicted Return Density |
Returns |
AVT 55 01 JUN 32
Pair trading matchups for 053807AV5
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with 053807AV5 and Dow Jones
The main advantage of trading using opposite 053807AV5 and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 053807AV5 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.053807AV5 vs. Dolphin Entertainment | 053807AV5 vs. WPP PLC ADR | 053807AV5 vs. Marchex | 053807AV5 vs. BCE Inc |
Dow Jones vs. Teleflex Incorporated | Dow Jones vs. Sonida Senior Living | Dow Jones vs. Avadel Pharmaceuticals PLC | Dow Jones vs. Cardinal Health |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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