Correlation Between HANetf ICAV and Dow Jones
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By analyzing existing cross correlation between HANetf ICAV and Dow Jones Industrial, you can compare the effects of market volatilities on HANetf ICAV 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 HANetf ICAV with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of HANetf ICAV and Dow Jones.
Diversification Opportunities for HANetf ICAV and Dow Jones
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between HANetf and Dow is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding HANetf ICAV 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 HANetf ICAV 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 HANetf ICAV 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 HANetf ICAV i.e., HANetf ICAV and Dow Jones go up and down completely randomly.
Pair Corralation between HANetf ICAV and Dow Jones
Assuming the 90 days trading horizon HANetf ICAV is expected to generate 1.17 times more return on investment than Dow Jones. However, HANetf ICAV is 1.17 times more volatile than Dow Jones Industrial. It trades about 0.08 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about -0.29 per unit of risk. If you would invest 845.00 in HANetf ICAV on September 25, 2024 and sell it today you would earn a total of 12.00 from holding HANetf ICAV or generate 1.42% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 95.24% |
Values | Daily Returns |
HANetf ICAV vs. Dow Jones Industrial
Performance |
Timeline |
HANetf ICAV and Dow Jones Volatility Contrast
Predicted Return Density |
Returns |
HANetf ICAV
Pair trading matchups for HANetf ICAV
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with HANetf ICAV and Dow Jones
The main advantage of trading using opposite HANetf ICAV and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HANetf ICAV 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.HANetf ICAV vs. UBS Fund Solutions | HANetf ICAV vs. Xtrackers II | HANetf ICAV vs. Xtrackers Nikkei 225 | HANetf ICAV vs. iShares VII PLC |
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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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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