Correlation Between Dow Jones and Future Fintech
Can any of the company-specific risk be diversified away by investing in both Dow Jones and Future Fintech 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 Future Fintech 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 Future Fintech Group, you can compare the effects of market volatilities on Dow Jones and Future Fintech 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 Future Fintech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and Future Fintech.
Diversification Opportunities for Dow Jones and Future Fintech
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Dow and Future is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial and Future Fintech Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Future Fintech Group 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 Future Fintech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Future Fintech Group has no effect on the direction of Dow Jones i.e., Dow Jones and Future Fintech go up and down completely randomly.
Pair Corralation between Dow Jones and Future Fintech
Assuming the 90 days trading horizon Dow Jones Industrial is expected to generate 0.23 times more return on investment than Future Fintech. However, Dow Jones Industrial is 4.32 times less risky than Future Fintech. It trades about 0.18 of its potential returns per unit of risk. Future Fintech Group is currently generating about -0.02 per unit of risk. If you would invest 3,831,486 in Dow Jones Industrial on April 4, 2025 and sell it today you would earn a total of 616,956 from holding Dow Jones Industrial or generate 16.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dow Jones Industrial vs. Future Fintech Group
Performance |
| Timeline |
Dow Jones and Future Fintech Volatility Contrast
Predicted Return Density |
| Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
Future Fintech Group
Pair trading matchups for Future Fintech
Pair Trading with Dow Jones and Future Fintech
The main advantage of trading using opposite Dow Jones and Future Fintech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones position performs unexpectedly, Future Fintech 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 Future Fintech will offset losses from the drop in Future Fintech's long position.| Dow Jones vs. Hanover Foods | Dow Jones vs. Federal Home Loan | Dow Jones vs. Willamette Valley Vineyards | Dow Jones vs. Emerson Electric |
| Future Fintech vs. Yuexiu Transport Infrastructure | Future Fintech vs. RCL Foods Limited | Future Fintech vs. Konoike Transport CoLtd | Future Fintech vs. Apogee Enterprises |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |