Correlation Between Dow Jones and MARTIN
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By analyzing existing cross correlation between Dow Jones Industrial and MARTIN MARIETTA MATLS, you can compare the effects of market volatilities on Dow Jones and MARTIN 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 MARTIN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and MARTIN.
Diversification Opportunities for Dow Jones and MARTIN
Very good diversification
The 3 months correlation between Dow and MARTIN is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial and MARTIN MARIETTA MATLS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MARTIN MARIETTA MATLS 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 MARTIN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MARTIN MARIETTA MATLS has no effect on the direction of Dow Jones i.e., Dow Jones and MARTIN go up and down completely randomly.
Pair Corralation between Dow Jones and MARTIN
Assuming the 90 days trading horizon Dow Jones Industrial is expected to generate 1.5 times more return on investment than MARTIN. However, Dow Jones is 1.5 times more volatile than MARTIN MARIETTA MATLS. It trades about 0.08 of its potential returns per unit of risk. MARTIN MARIETTA MATLS is currently generating about 0.02 per unit of risk. If you would invest 3,313,637 in Dow Jones Industrial on September 24, 2024 and sell it today you would earn a total of 970,389 from holding Dow Jones Industrial or generate 29.28% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 62.98% |
Values | Daily Returns |
Dow Jones Industrial vs. MARTIN MARIETTA MATLS
Performance |
Timeline |
Dow Jones and MARTIN Volatility Contrast
Predicted Return Density |
Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
MARTIN MARIETTA MATLS
Pair trading matchups for MARTIN
Pair Trading with Dow Jones and MARTIN
The main advantage of trading using opposite Dow Jones and MARTIN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones position performs unexpectedly, MARTIN 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 MARTIN will offset losses from the drop in MARTIN's long position.Dow Jones vs. Teleflex Incorporated | Dow Jones vs. Sonida Senior Living | Dow Jones vs. Avadel Pharmaceuticals PLC | Dow Jones vs. Cardinal Health |
MARTIN vs. AEP TEX INC | MARTIN vs. US BANK NATIONAL | MARTIN vs. Brightsphere Investment Group | MARTIN vs. Neurocrine Biosciences |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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