Correlation Between ASTELLAS PHARMA and Dow Jones
Can any of the company-specific risk be diversified away by investing in both ASTELLAS PHARMA 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 ASTELLAS PHARMA and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ASTELLAS PHARMA UNSPADR and Dow Jones Industrial, you can compare the effects of market volatilities on ASTELLAS PHARMA 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 ASTELLAS PHARMA with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of ASTELLAS PHARMA and Dow Jones.
Diversification Opportunities for ASTELLAS PHARMA and Dow Jones
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between ASTELLAS and Dow is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding ASTELLAS PHARMA UNSPADR 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 ASTELLAS PHARMA 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 ASTELLAS PHARMA UNSPADR 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 ASTELLAS PHARMA i.e., ASTELLAS PHARMA and Dow Jones go up and down completely randomly.
Pair Corralation between ASTELLAS PHARMA and Dow Jones
Assuming the 90 days trading horizon ASTELLAS PHARMA UNSPADR is expected to under-perform the Dow Jones. In addition to that, ASTELLAS PHARMA is 1.65 times more volatile than Dow Jones Industrial. It trades about -0.11 of its total potential returns per unit of risk. Dow Jones Industrial is currently generating about -0.09 per unit of volatility. If you would invest 4,501,404 in Dow Jones Industrial on December 4, 2024 and sell it today you would lose (182,280) from holding Dow Jones Industrial or give up 4.05% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 98.33% |
Values | Daily Returns |
ASTELLAS PHARMA UNSPADR vs. Dow Jones Industrial
Performance |
Timeline |
ASTELLAS PHARMA and Dow Jones Volatility Contrast
Predicted Return Density |
Returns |
ASTELLAS PHARMA UNSPADR
Pair trading matchups for ASTELLAS PHARMA
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with ASTELLAS PHARMA and Dow Jones
The main advantage of trading using opposite ASTELLAS PHARMA and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ASTELLAS PHARMA 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.ASTELLAS PHARMA vs. Siemens Healthineers AG | ASTELLAS PHARMA vs. FANDIFI TECHNOLOGY P | ASTELLAS PHARMA vs. Planet Fitness | ASTELLAS PHARMA vs. Cognizant Technology Solutions |
Dow Jones vs. Balchem | Dow Jones vs. Merit Medical Systems | Dow Jones vs. American Vanguard | Dow Jones vs. Regeneron Pharmaceuticals |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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