Correlation Between 191216DP2 and Dow Jones
Specify exactly 2 symbols:
By analyzing existing cross correlation between COCA COLA CO and Dow Jones Industrial, you can compare the effects of market volatilities on 191216DP2 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 191216DP2 with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of 191216DP2 and Dow Jones.
Diversification Opportunities for 191216DP2 and Dow Jones
Very good diversification
The 3 months correlation between 191216DP2 and Dow is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding COCA COLA CO 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 191216DP2 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 COCA COLA CO 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 191216DP2 i.e., 191216DP2 and Dow Jones go up and down completely randomly.
Pair Corralation between 191216DP2 and Dow Jones
Assuming the 90 days trading horizon COCA COLA CO is expected to generate 0.41 times more return on investment than Dow Jones. However, COCA COLA CO is 2.47 times less risky than Dow Jones. It trades about -0.21 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about -0.3 per unit of risk. If you would invest 8,626 in COCA COLA CO on September 24, 2024 and sell it today you would lose (106.00) from holding COCA COLA CO or give up 1.23% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
COCA COLA CO vs. Dow Jones Industrial
Performance |
Timeline |
191216DP2 and Dow Jones Volatility Contrast
Predicted Return Density |
Returns |
COCA COLA CO
Pair trading matchups for 191216DP2
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with 191216DP2 and Dow Jones
The main advantage of trading using opposite 191216DP2 and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 191216DP2 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.191216DP2 vs. Coty Inc | 191216DP2 vs. Acme United | 191216DP2 vs. Lincoln Electric Holdings | 191216DP2 vs. Procter Gamble |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |