Correlation Between MARATHON and Dow Jones
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By analyzing existing cross correlation between MARATHON PETE P and Dow Jones Industrial, you can compare the effects of market volatilities on MARATHON 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 MARATHON with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of MARATHON and Dow Jones.
Diversification Opportunities for MARATHON and Dow Jones
Significant diversification
The 3 months correlation between MARATHON and Dow is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding MARATHON PETE P 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 MARATHON 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 MARATHON PETE P 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 MARATHON i.e., MARATHON and Dow Jones go up and down completely randomly.
Pair Corralation between MARATHON and Dow Jones
Assuming the 90 days trading horizon MARATHON PETE P is expected to generate 0.99 times more return on investment than Dow Jones. However, MARATHON PETE P is 1.01 times less risky than Dow Jones. It trades about 0.0 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about -0.01 per unit of risk. If you would invest 10,725 in MARATHON PETE P on October 11, 2024 and sell it today you would lose (38.00) from holding MARATHON PETE P or give up 0.35% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 95.16% |
Values | Daily Returns |
MARATHON PETE P vs. Dow Jones Industrial
Performance |
Timeline |
MARATHON and Dow Jones Volatility Contrast
Predicted Return Density |
Returns |
MARATHON PETE P
Pair trading matchups for MARATHON
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with MARATHON and Dow Jones
The main advantage of trading using opposite MARATHON and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MARATHON 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.MARATHON vs. Turning Point Brands | MARATHON vs. Office Properties Income | MARATHON vs. Japan Tobacco ADR | MARATHON vs. Ambev SA ADR |
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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 Global Correlations module to find global opportunities by holding instruments from different markets.
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