Correlation Between Dow Jones and Bridgemarq Real
Can any of the company-specific risk be diversified away by investing in both Dow Jones and Bridgemarq Real 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 Bridgemarq Real 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 Bridgemarq Real Estate, you can compare the effects of market volatilities on Dow Jones and Bridgemarq Real 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 Bridgemarq Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and Bridgemarq Real.
Diversification Opportunities for Dow Jones and Bridgemarq Real
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Dow and Bridgemarq is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial and Bridgemarq Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bridgemarq Real Estate 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 Bridgemarq Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bridgemarq Real Estate has no effect on the direction of Dow Jones i.e., Dow Jones and Bridgemarq Real go up and down completely randomly.
Pair Corralation between Dow Jones and Bridgemarq Real
Assuming the 90 days trading horizon Dow Jones Industrial is expected to under-perform the Bridgemarq Real. But the index apears to be less risky and, when comparing its historical volatility, Dow Jones Industrial is 1.66 times less risky than Bridgemarq Real. The index trades about -0.04 of its potential returns per unit of risk. The Bridgemarq Real Estate is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 1,476 in Bridgemarq Real Estate on December 30, 2024 and sell it today you would lose (37.00) from holding Bridgemarq Real Estate or give up 2.51% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 96.88% |
Values | Daily Returns |
Dow Jones Industrial vs. Bridgemarq Real Estate
Performance |
Timeline |
Dow Jones and Bridgemarq Real Volatility Contrast
Predicted Return Density |
Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
Bridgemarq Real Estate
Pair trading matchups for Bridgemarq Real
Pair Trading with Dow Jones and Bridgemarq Real
The main advantage of trading using opposite Dow Jones and Bridgemarq Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones position performs unexpectedly, Bridgemarq Real 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 Bridgemarq Real will offset losses from the drop in Bridgemarq Real's long position.Dow Jones vs. Highway Holdings Limited | Dow Jones vs. Companhia Siderurgica Nacional | Dow Jones vs. POSCO Holdings | Dow Jones vs. Grupo Simec SAB |
Bridgemarq Real vs. Inovalis Real Estate | Bridgemarq Real vs. Atrium Mortgage Investment | Bridgemarq Real vs. Timbercreek Financial Corp | Bridgemarq Real vs. True North Commercial |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
FinTech Suite Use AI to screen and filter profitable investment opportunities | |
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
Performance Analysis Check effects of mean-variance optimization against your current asset allocation |