Correlation Between Dow Jones and Axactor SE
Can any of the company-specific risk be diversified away by investing in both Dow Jones and Axactor SE 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 Dow Jones and Axactor SE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dow Jones Industrial and Axactor SE, you can compare the effects of market volatilities on Dow Jones and Axactor SE 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 Dow Jones with a short position of Axactor SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and Axactor SE.
Diversification Opportunities for Dow Jones and Axactor SE
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Dow and Axactor is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial and Axactor SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Axactor SE and Dow Jones 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 Dow Jones Industrial are associated (or correlated) with Axactor SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Axactor SE has no effect on the direction of Dow Jones i.e., Dow Jones and Axactor SE go up and down completely randomly.
Pair Corralation between Dow Jones and Axactor SE
Assuming the 90 days trading horizon Dow Jones is expected to generate 5.36 times less return on investment than Axactor SE. But when comparing it to its historical volatility, Dow Jones Industrial is 5.04 times less risky than Axactor SE. It trades about 0.18 of its potential returns per unit of risk. Axactor SE is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 606.00 in Axactor SE on June 2, 2025 and sell it today you would earn a total of 274.00 from holding Axactor SE or generate 45.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 98.46% |
| Values | Daily Returns |
Dow Jones Industrial vs. Axactor SE
Performance |
| Timeline |
Dow Jones and Axactor SE Volatility Contrast
Predicted Return Density |
| Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
Axactor SE
Pair trading matchups for Axactor SE
Pair Trading with Dow Jones and Axactor SE
The main advantage of trading using opposite Dow Jones and Axactor SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones position performs unexpectedly, Axactor SE 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 Axactor SE will offset losses from the drop in Axactor SE's long position.| Dow Jones vs. Analog Devices | Dow Jones vs. MGIC Investment Corp | Dow Jones vs. Alignment Healthcare LLC | Dow Jones vs. Old Republic International |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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