Correlation Between Dow Jones and In Win
Can any of the company-specific risk be diversified away by investing in both Dow Jones and In Win 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 Dow Jones and In Win into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dow Jones Industrial and In Win Development, you can compare the effects of market volatilities on Dow Jones and In Win 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 Dow Jones with a short position of In Win. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and In Win.
Diversification Opportunities for Dow Jones and In Win
Good diversification
The 3 months correlation between Dow and 6117 is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial and In Win Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on In Win Development and Dow Jones 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 Dow Jones Industrial are associated (or correlated) with In Win. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of In Win Development has no effect on the direction of Dow Jones i.e., Dow Jones and In Win go up and down completely randomly.
Pair Corralation between Dow Jones and In Win
Assuming the 90 days trading horizon Dow Jones Industrial is expected to generate 0.25 times more return on investment than In Win. However, Dow Jones Industrial is 3.95 times less risky than In Win. It trades about 0.08 of its potential returns per unit of risk. In Win Development is currently generating about -0.01 per unit of risk. If you would invest 4,202,519 in Dow Jones Industrial on September 19, 2024 and sell it today you would earn a total of 142,471 from holding Dow Jones Industrial or generate 3.39% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Dow Jones Industrial vs. In Win Development
Performance |
Timeline |
Dow Jones and In Win Volatility Contrast
Predicted Return Density |
Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
In Win Development
Pair trading matchups for In Win
Pair Trading with Dow Jones and In Win
The main advantage of trading using opposite Dow Jones and In Win positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones position performs unexpectedly, In Win 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 In Win will offset losses from the drop in In Win's long position.Dow Jones vs. Mangazeya Mining | ||
Dow Jones vs. Summit Materials | ||
Dow Jones vs. Perseus Mining Limited | ||
Dow Jones vs. AMCON Distributing |
In Win vs. AU Optronics | ||
In Win vs. Innolux Corp | ||
In Win vs. Ruentex Development Co | ||
In Win vs. Novatek Microelectronics Corp |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
Money Managers Screen money managers from public funds and ETFs managed around the world | |
Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
Content Syndication Quickly integrate customizable finance content to your own investment portal |