Correlation Between HUBBELL and Dow Jones
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By analyzing existing cross correlation between HUBBELL INC 35 and Dow Jones Industrial, you can compare the effects of market volatilities on HUBBELL 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 HUBBELL with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUBBELL and Dow Jones.
Diversification Opportunities for HUBBELL and Dow Jones
Significant diversification
The 3 months correlation between HUBBELL and Dow is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding HUBBELL INC 35 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 HUBBELL 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 HUBBELL INC 35 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 HUBBELL i.e., HUBBELL and Dow Jones go up and down completely randomly.
Pair Corralation between HUBBELL and Dow Jones
Assuming the 90 days trading horizon HUBBELL INC 35 is expected to generate 0.39 times more return on investment than Dow Jones. However, HUBBELL INC 35 is 2.57 times less risky than Dow Jones. It trades about -0.15 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about -0.22 per unit of risk. If you would invest 9,667 in HUBBELL INC 35 on October 11, 2024 and sell it today you would lose (86.00) from holding HUBBELL INC 35 or give up 0.89% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 90.91% |
Values | Daily Returns |
HUBBELL INC 35 vs. Dow Jones Industrial
Performance |
Timeline |
HUBBELL and Dow Jones Volatility Contrast
Predicted Return Density |
Returns |
HUBBELL INC 35
Pair trading matchups for HUBBELL
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with HUBBELL and Dow Jones
The main advantage of trading using opposite HUBBELL and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUBBELL 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.HUBBELL vs. Naked Wines plc | HUBBELL vs. Ispire Technology Common | HUBBELL vs. Vita Coco | HUBBELL vs. Brandywine Realty Trust |
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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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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