Correlation Between MARRIOTT and Dow Jones
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By analyzing existing cross correlation between MARRIOTT INTL INC and Dow Jones Industrial, you can compare the effects of market volatilities on MARRIOTT 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 MARRIOTT with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of MARRIOTT and Dow Jones.
Diversification Opportunities for MARRIOTT and Dow Jones
Good diversification
The 3 months correlation between MARRIOTT and Dow is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding MARRIOTT INTL INC 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 MARRIOTT 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 MARRIOTT INTL INC 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 MARRIOTT i.e., MARRIOTT and Dow Jones go up and down completely randomly.
Pair Corralation between MARRIOTT and Dow Jones
Assuming the 90 days trading horizon MARRIOTT INTL INC is expected to generate 65.67 times more return on investment than Dow Jones. However, MARRIOTT is 65.67 times more volatile than Dow Jones Industrial. It trades about 0.04 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.08 per unit of risk. If you would invest 9,637 in MARRIOTT INTL INC on September 24, 2024 and sell it today you would earn a total of 23.00 from holding MARRIOTT INTL INC or generate 0.24% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 91.75% |
Values | Daily Returns |
MARRIOTT INTL INC vs. Dow Jones Industrial
Performance |
Timeline |
MARRIOTT and Dow Jones Volatility Contrast
Predicted Return Density |
Returns |
MARRIOTT INTL INC
Pair trading matchups for MARRIOTT
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with MARRIOTT and Dow Jones
The main advantage of trading using opposite MARRIOTT and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MARRIOTT 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.MARRIOTT vs. Grupo Televisa SAB | MARRIOTT vs. Skechers USA | MARRIOTT vs. Kontoor Brands | MARRIOTT vs. Citi Trends |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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