Correlation Between Dow Jones and Evaluator Tactically
Can any of the company-specific risk be diversified away by investing in both Dow Jones and Evaluator Tactically 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 Evaluator Tactically 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 Evaluator Tactically Managed, you can compare the effects of market volatilities on Dow Jones and Evaluator Tactically 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 Evaluator Tactically. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and Evaluator Tactically.
Diversification Opportunities for Dow Jones and Evaluator Tactically
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Dow and Evaluator is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial and Evaluator Tactically Managed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Evaluator Tactically 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 Evaluator Tactically. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Evaluator Tactically has no effect on the direction of Dow Jones i.e., Dow Jones and Evaluator Tactically go up and down completely randomly.
Pair Corralation between Dow Jones and Evaluator Tactically
Assuming the 90 days trading horizon Dow Jones Industrial is expected to generate 2.26 times more return on investment than Evaluator Tactically. However, Dow Jones is 2.26 times more volatile than Evaluator Tactically Managed. It trades about 0.22 of its potential returns per unit of risk. Evaluator Tactically Managed is currently generating about 0.27 per unit of risk. If you would invest 4,286,577 in Dow Jones Industrial on April 12, 2025 and sell it today you would earn a total of 150,574 from holding Dow Jones Industrial or generate 3.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dow Jones Industrial vs. Evaluator Tactically Managed
Performance |
| Timeline |
Dow Jones and Evaluator Tactically Volatility Contrast
Predicted Return Density |
| Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
Evaluator Tactically Managed
Pair trading matchups for Evaluator Tactically
Pair Trading with Dow Jones and Evaluator Tactically
The main advantage of trading using opposite Dow Jones and Evaluator Tactically positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones position performs unexpectedly, Evaluator Tactically 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 Evaluator Tactically will offset losses from the drop in Evaluator Tactically's long position.| Dow Jones vs. JD Sports Fashion | Dow Jones vs. Comstock Metals | Dow Jones vs. Academy Sports Outdoors | Dow Jones vs. Old Dominion Freight |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |