Correlation Between Liontrust Asset and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Liontrust Asset 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 Liontrust Asset and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Liontrust Asset Management and Dow Jones Industrial, you can compare the effects of market volatilities on Liontrust Asset 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 Liontrust Asset with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Liontrust Asset and Dow Jones.
Diversification Opportunities for Liontrust Asset and Dow Jones
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Liontrust and Dow is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Liontrust Asset Management 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 Liontrust Asset 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 Liontrust Asset Management 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 Liontrust Asset i.e., Liontrust Asset and Dow Jones go up and down completely randomly.
Pair Corralation between Liontrust Asset and Dow Jones
Assuming the 90 days trading horizon Liontrust Asset Management is expected to under-perform the Dow Jones. In addition to that, Liontrust Asset is 2.77 times more volatile than Dow Jones Industrial. It trades about -0.12 of its total potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.1 per unit of volatility. If you would invest 4,448,449 in Dow Jones Industrial on July 17, 2025 and sell it today you would earn a total of 178,597 from holding Dow Jones Industrial or generate 4.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Liontrust Asset Management vs. Dow Jones Industrial
Performance |
| Timeline |
Liontrust Asset and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Liontrust Asset Management
Pair trading matchups for Liontrust Asset
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Liontrust Asset and Dow Jones
The main advantage of trading using opposite Liontrust Asset and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Liontrust Asset 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.| Liontrust Asset vs. Bell Food Group | Liontrust Asset vs. Bank of Ireland | Liontrust Asset vs. BioPharma Credit PLC | Liontrust Asset vs. Games Workshop Group |
| Dow Jones vs. Goldrich Mining Co | Dow Jones vs. Lamar Advertising | Dow Jones vs. Paiute Oil Mining | Dow Jones vs. Crimson Wine |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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