Correlation Between Dow Jones and Conifer Holdings

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Can any of the company-specific risk be diversified away by investing in both Dow Jones and Conifer Holdings 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 Conifer Holdings 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 Conifer Holdings Senior, you can compare the effects of market volatilities on Dow Jones and Conifer Holdings 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 Conifer Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and Conifer Holdings.

Diversification Opportunities for Dow Jones and Conifer Holdings

0.39
  Correlation Coefficient

Weak diversification

The 3 months correlation between Dow and Conifer is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial and Conifer Holdings Senior in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Conifer Holdings Senior 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 Conifer Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Conifer Holdings Senior has no effect on the direction of Dow Jones i.e., Dow Jones and Conifer Holdings go up and down completely randomly.
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Pair Corralation between Dow Jones and Conifer Holdings

If you would invest  2,203  in Conifer Holdings Senior on September 29, 2024 and sell it today you would earn a total of  0.00  from holding Conifer Holdings Senior or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy4.55%
ValuesDaily Returns

Dow Jones Industrial  vs.  Conifer Holdings Senior

 Performance 
       Timeline  

Dow Jones and Conifer Holdings Volatility Contrast

   Predicted Return Density   
       Returns  

Conifer Holdings Senior

Pair trading matchups for Conifer Holdings

Pair Trading with Dow Jones and Conifer Holdings

The main advantage of trading using opposite Dow Jones and Conifer Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones position performs unexpectedly, Conifer Holdings 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 Conifer Holdings will offset losses from the drop in Conifer Holdings' long position.
The idea behind Dow Jones Industrial and Conifer Holdings Senior pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.

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