Correlation Between Minera Frisco and Dow Jones
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By analyzing existing cross correlation between Minera Frisco SAB and Dow Jones Industrial, you can compare the effects of market volatilities on Minera Frisco 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 Minera Frisco with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Minera Frisco and Dow Jones.
Diversification Opportunities for Minera Frisco and Dow Jones
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Minera and Dow is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Minera Frisco SAB 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 Minera Frisco 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 Minera Frisco SAB 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 Minera Frisco i.e., Minera Frisco and Dow Jones go up and down completely randomly.
Pair Corralation between Minera Frisco and Dow Jones
Assuming the 90 days trading horizon Minera Frisco SAB is expected to under-perform the Dow Jones. In addition to that, Minera Frisco is 5.06 times more volatile than Dow Jones Industrial. It trades about -0.14 of its total potential returns per unit of risk. Dow Jones Industrial is currently generating about -0.3 per unit of volatility. If you would invest 4,473,657 in Dow Jones Industrial on September 24, 2024 and sell it today you would lose (189,631) from holding Dow Jones Industrial or give up 4.24% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Minera Frisco SAB vs. Dow Jones Industrial
Performance |
Timeline |
Minera Frisco and Dow Jones Volatility Contrast
Predicted Return Density |
Returns |
Minera Frisco SAB
Pair trading matchups for Minera Frisco
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Minera Frisco and Dow Jones
The main advantage of trading using opposite Minera Frisco and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Minera Frisco 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.Minera Frisco vs. BHP Group | Minera Frisco vs. Rio Tinto Group | Minera Frisco vs. Vale SA | Minera Frisco vs. Glencore plc |
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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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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