Correlation Between PENSKE and Dow Jones
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By analyzing existing cross correlation between PENSKE 57 01 FEB 28 and Dow Jones Industrial, you can compare the effects of market volatilities on PENSKE 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 PENSKE with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of PENSKE and Dow Jones.
Diversification Opportunities for PENSKE and Dow Jones
Very good diversification
The 3 months correlation between PENSKE and Dow is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding PENSKE 57 01 FEB 28 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 PENSKE 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 PENSKE 57 01 FEB 28 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 PENSKE i.e., PENSKE and Dow Jones go up and down completely randomly.
Pair Corralation between PENSKE and Dow Jones
Assuming the 90 days trading horizon PENSKE 57 01 FEB 28 is expected to under-perform the Dow Jones. But the bond apears to be less risky and, when comparing its historical volatility, PENSKE 57 01 FEB 28 is 2.58 times less risky than Dow Jones. The bond trades about -0.23 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 | 64.62% |
Values | Daily Returns |
PENSKE 57 01 FEB 28 vs. Dow Jones Industrial
Performance |
Timeline |
PENSKE and Dow Jones Volatility Contrast
Predicted Return Density |
Returns |
PENSKE 57 01 FEB 28
Pair trading matchups for PENSKE
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with PENSKE and Dow Jones
The main advantage of trading using opposite PENSKE and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PENSKE 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.PENSKE vs. Playa Hotels Resorts | PENSKE vs. Northstar Clean Technologies | PENSKE vs. Summa Silver Corp | PENSKE vs. ANTA Sports Products |
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 CEOs Directory module to screen CEOs from public companies around the world.
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