Correlation Between 25160PAE7 and Dow Jones
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By analyzing existing cross correlation between DEUTSCHE BK AG and Dow Jones Industrial, you can compare the effects of market volatilities on 25160PAE7 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 25160PAE7 with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of 25160PAE7 and Dow Jones.
Diversification Opportunities for 25160PAE7 and Dow Jones
Good diversification
The 3 months correlation between 25160PAE7 and Dow is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding DEUTSCHE BK AG 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 25160PAE7 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 DEUTSCHE BK AG 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 25160PAE7 i.e., 25160PAE7 and Dow Jones go up and down completely randomly.
Pair Corralation between 25160PAE7 and Dow Jones
Assuming the 90 days trading horizon 25160PAE7 is expected to generate 4.02 times less return on investment than Dow Jones. But when comparing it to its historical volatility, DEUTSCHE BK AG is 1.39 times less risky than Dow Jones. It trades about 0.03 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 3,912,780 in Dow Jones Industrial on September 24, 2024 and sell it today you would earn a total of 371,246 from holding Dow Jones Industrial or generate 9.49% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 81.75% |
Values | Daily Returns |
DEUTSCHE BK AG vs. Dow Jones Industrial
Performance |
Timeline |
25160PAE7 and Dow Jones Volatility Contrast
Predicted Return Density |
Returns |
DEUTSCHE BK AG
Pair trading matchups for 25160PAE7
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with 25160PAE7 and Dow Jones
The main advantage of trading using opposite 25160PAE7 and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 25160PAE7 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.25160PAE7 vs. Delek Logistics Partners | 25160PAE7 vs. Perseus Mining Limited | 25160PAE7 vs. Ryanair Holdings PLC | 25160PAE7 vs. Bright Scholar Education |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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