Correlation Between Dow Jones and Mid-cap 15x
Can any of the company-specific risk be diversified away by investing in both Dow Jones and Mid-cap 15x 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 Mid-cap 15x 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 Mid Cap 15x Strategy, you can compare the effects of market volatilities on Dow Jones and Mid-cap 15x 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 Mid-cap 15x. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and Mid-cap 15x.
Diversification Opportunities for Dow Jones and Mid-cap 15x
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Dow and Mid-cap is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial and Mid Cap 15x Strategy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mid Cap 15x 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 Mid-cap 15x. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mid Cap 15x has no effect on the direction of Dow Jones i.e., Dow Jones and Mid-cap 15x go up and down completely randomly.
Pair Corralation between Dow Jones and Mid-cap 15x
Assuming the 90 days trading horizon Dow Jones is expected to generate 1.78 times less return on investment than Mid-cap 15x. But when comparing it to its historical volatility, Dow Jones Industrial is 1.95 times less risky than Mid-cap 15x. It trades about 0.16 of its potential returns per unit of risk. Mid Cap 15x Strategy is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 12,363 in Mid Cap 15x Strategy on June 4, 2025 and sell it today you would earn a total of 1,461 from holding Mid Cap 15x Strategy or generate 11.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 98.41% |
| Values | Daily Returns |
Dow Jones Industrial vs. Mid Cap 15x Strategy
Performance |
| Timeline |
Dow Jones and Mid-cap 15x Volatility Contrast
Predicted Return Density |
| Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
Mid Cap 15x Strategy
Pair trading matchups for Mid-cap 15x
Pair Trading with Dow Jones and Mid-cap 15x
The main advantage of trading using opposite Dow Jones and Mid-cap 15x positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones position performs unexpectedly, Mid-cap 15x 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 Mid-cap 15x will offset losses from the drop in Mid-cap 15x's long position.| Dow Jones vs. Kulicke and Soffa | Dow Jones vs. Franklin Wireless Corp | Dow Jones vs. Rambler Metals and | Dow Jones vs. Aluminum of |
| Mid-cap 15x vs. Calvert Conservative Allocation | Mid-cap 15x vs. Jpmorgan Diversified Fund | Mid-cap 15x vs. Elfun Diversified Fund | Mid-cap 15x vs. American Funds Conservative |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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