Correlation Between Bridgemarq Real and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Bridgemarq Real and Dow Jones at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Bridgemarq Real and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bridgemarq Real Estate and Dow Jones Industrial, you can compare the effects of market volatilities on Bridgemarq Real 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 Bridgemarq Real with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bridgemarq Real and Dow Jones.
Diversification Opportunities for Bridgemarq Real and Dow Jones
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Bridgemarq and Dow is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Bridgemarq Real Estate 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 Bridgemarq Real 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 Bridgemarq Real Estate 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 Bridgemarq Real i.e., Bridgemarq Real and Dow Jones go up and down completely randomly.
Pair Corralation between Bridgemarq Real and Dow Jones
Assuming the 90 days trading horizon Bridgemarq Real Estate is expected to generate about the same return on investment as Dow Jones Industrial. However, Bridgemarq Real is 1.67 times more volatile than Dow Jones Industrial. It trades about 0.12 of its potential returns per unit of risk. Dow Jones Industrial is currently producing about 0.2 per unit of risk. If you would invest 4,073,696 in Dow Jones Industrial on September 10, 2024 and sell it today you would earn a total of 390,556 from holding Dow Jones Industrial or generate 9.59% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Bridgemarq Real Estate vs. Dow Jones Industrial
Performance |
Timeline |
Bridgemarq Real and Dow Jones Volatility Contrast
Predicted Return Density |
Returns |
Bridgemarq Real Estate
Pair trading matchups for Bridgemarq Real
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Bridgemarq Real and Dow Jones
The main advantage of trading using opposite Bridgemarq Real and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bridgemarq Real 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.Bridgemarq Real vs. Inovalis Real Estate | Bridgemarq Real vs. Atrium Mortgage Investment | Bridgemarq Real vs. Slate Office REIT | Bridgemarq Real vs. Timbercreek Financial Corp |
Dow Jones vs. SEI Investments | Dow Jones vs. Morgan Stanley | Dow Jones vs. CDW Corp | Dow Jones vs. Independence Realty Trust |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |