Correlation Between Cushman Wakefield and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Cushman Wakefield 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 Cushman Wakefield and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cushman Wakefield plc and Dow Jones Industrial, you can compare the effects of market volatilities on Cushman Wakefield 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 Cushman Wakefield with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cushman Wakefield and Dow Jones.
Diversification Opportunities for Cushman Wakefield and Dow Jones
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Cushman and Dow is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Cushman Wakefield plc 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 Cushman Wakefield 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 Cushman Wakefield plc 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 Cushman Wakefield i.e., Cushman Wakefield and Dow Jones go up and down completely randomly.
Pair Corralation between Cushman Wakefield and Dow Jones
Considering the 90-day investment horizon Cushman Wakefield plc is expected to under-perform the Dow Jones. In addition to that, Cushman Wakefield is 2.94 times more volatile than Dow Jones Industrial. It trades about -0.01 of its total potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.12 per unit of volatility. If you would invest 4,540,086 in Dow Jones Industrial on September 5, 2025 and sell it today you would earn a total of 245,008 from holding Dow Jones Industrial or generate 5.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cushman Wakefield plc vs. Dow Jones Industrial
Performance |
| Timeline |
Cushman Wakefield and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Cushman Wakefield plc
Pair trading matchups for Cushman Wakefield
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Cushman Wakefield and Dow Jones
The main advantage of trading using opposite Cushman Wakefield and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cushman Wakefield 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.| Cushman Wakefield vs. Gaming Realms plc | Cushman Wakefield vs. Boyd Gaming | Cushman Wakefield vs. Rheon Automatic Machinery | Cushman Wakefield vs. Takamatsu Construction Group |
| Dow Jones vs. Gamma Communications plc | Dow Jones vs. B Communications | Dow Jones vs. Xtera Communications | Dow Jones vs. On4 Communications |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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