Correlation Between CI Enhanced and Dow Jones
Can any of the company-specific risk be diversified away by investing in both CI Enhanced and Dow Jones 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 CI Enhanced and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CI Enhanced Government and Dow Jones Industrial, you can compare the effects of market volatilities on CI Enhanced and Dow Jones 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 CI Enhanced with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of CI Enhanced and Dow Jones.
Diversification Opportunities for CI Enhanced and Dow Jones
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between FGO and Dow is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding CI Enhanced Government and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial and CI Enhanced 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 CI Enhanced Government are associated (or correlated) with Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of CI Enhanced i.e., CI Enhanced and Dow Jones go up and down completely randomly.
Pair Corralation between CI Enhanced and Dow Jones
Assuming the 90 days trading horizon CI Enhanced Government is expected to generate 0.49 times more return on investment than Dow Jones. However, CI Enhanced Government is 2.04 times less risky than Dow Jones. It trades about 0.27 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about -0.11 per unit of risk. If you would invest 1,000.00 in CI Enhanced Government on December 2, 2024 and sell it today you would earn a total of 19.00 from holding CI Enhanced Government or generate 1.9% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
CI Enhanced Government vs. Dow Jones Industrial
Performance |
Timeline |
CI Enhanced and Dow Jones Volatility Contrast
Predicted Return Density |
Returns |
CI Enhanced Government
Pair trading matchups for CI Enhanced
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with CI Enhanced and Dow Jones
The main advantage of trading using opposite CI Enhanced and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CI Enhanced position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.CI Enhanced vs. CI Enhanced Short | CI Enhanced vs. CI Investment Grade | CI Enhanced vs. CI Global Financial | CI Enhanced vs. CI Marret Alternative |
Dow Jones vs. Antero Midstream Partners | Dow Jones vs. Evergy, | Dow Jones vs. PPL Corporation | Dow Jones vs. China Resources Beer |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |