Correlation Between KAISER and Dow Jones
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By analyzing existing cross correlation between KAISER FNDTN HOSPS and Dow Jones Industrial, you can compare the effects of market volatilities on KAISER 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 KAISER with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of KAISER and Dow Jones.
Diversification Opportunities for KAISER and Dow Jones
Good diversification
The 3 months correlation between KAISER and Dow is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding KAISER FNDTN HOSPS 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 KAISER 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 KAISER FNDTN HOSPS 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 KAISER i.e., KAISER and Dow Jones go up and down completely randomly.
Pair Corralation between KAISER and Dow Jones
Assuming the 90 days trading horizon KAISER FNDTN HOSPS is expected to under-perform the Dow Jones. In addition to that, KAISER is 1.42 times more volatile than Dow Jones Industrial. It trades about -0.03 of its total potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.1 per unit of volatility. If you would invest 4,211,440 in Dow Jones Industrial on October 25, 2024 and sell it today you would earn a total of 204,233 from holding Dow Jones Industrial or generate 4.85% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 98.33% |
Values | Daily Returns |
KAISER FNDTN HOSPS vs. Dow Jones Industrial
Performance |
Timeline |
KAISER and Dow Jones Volatility Contrast
Predicted Return Density |
Returns |
KAISER FNDTN HOSPS
Pair trading matchups for KAISER
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with KAISER and Dow Jones
The main advantage of trading using opposite KAISER and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KAISER 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.KAISER vs. Universal Stainless Alloy | KAISER vs. Robix Environmental Technologies | KAISER vs. China Clean Energy | KAISER vs. CleanGo Innovations |
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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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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