Correlation Between Dow Jones and Actelis Networks
Can any of the company-specific risk be diversified away by investing in both Dow Jones and Actelis Networks 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 Actelis Networks 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 Actelis Networks, you can compare the effects of market volatilities on Dow Jones and Actelis Networks 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 Actelis Networks. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and Actelis Networks.
Diversification Opportunities for Dow Jones and Actelis Networks
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Dow and Actelis is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial and Actelis Networks in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Actelis Networks 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 Actelis Networks. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Actelis Networks has no effect on the direction of Dow Jones i.e., Dow Jones and Actelis Networks go up and down completely randomly.
Pair Corralation between Dow Jones and Actelis Networks
Assuming the 90 days trading horizon Dow Jones Industrial is expected to generate 0.22 times more return on investment than Actelis Networks. However, Dow Jones Industrial is 4.47 times less risky than Actelis Networks. It trades about -0.16 of its potential returns per unit of risk. Actelis Networks is currently generating about -0.38 per unit of risk. If you would invest 4,488,213 in Dow Jones Industrial on December 1, 2024 and sell it today you would lose (104,122) from holding Dow Jones Industrial or give up 2.32% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Dow Jones Industrial vs. Actelis Networks
Performance |
Timeline |
Dow Jones and Actelis Networks Volatility Contrast
Predicted Return Density |
Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
Actelis Networks
Pair trading matchups for Actelis Networks
Pair Trading with Dow Jones and Actelis Networks
The main advantage of trading using opposite Dow Jones and Actelis Networks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones position performs unexpectedly, Actelis Networks 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 Actelis Networks will offset losses from the drop in Actelis Networks' long position.Dow Jones vs. Cannae Holdings | Dow Jones vs. Fidus Investment Corp | Dow Jones vs. SEI Investments | Dow Jones vs. Cracker Barrel Old |
Actelis Networks vs. ClearOne | Actelis Networks vs. Siyata Mobile | Actelis Networks vs. SatixFy Communications | Actelis Networks vs. Optical Cable |
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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |