Correlation Between SHF Holdings and Dow Jones
Can any of the company-specific risk be diversified away by investing in both SHF Holdings 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 SHF Holdings and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SHF Holdings and Dow Jones Industrial, you can compare the effects of market volatilities on SHF Holdings 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 SHF Holdings with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of SHF Holdings and Dow Jones.
Diversification Opportunities for SHF Holdings and Dow Jones
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SHF and Dow is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding SHF Holdings 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 SHF Holdings 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 SHF Holdings 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 SHF Holdings i.e., SHF Holdings and Dow Jones go up and down completely randomly.
Pair Corralation between SHF Holdings and Dow Jones
Given the investment horizon of 90 days SHF Holdings is expected to generate 29.24 times more return on investment than Dow Jones. However, SHF Holdings is 29.24 times more volatile than Dow Jones Industrial. It trades about 0.07 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.1 per unit of risk. If you would invest 355.00 in SHF Holdings on July 20, 2025 and sell it today you would earn a total of 23.00 from holding SHF Holdings or generate 6.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SHF Holdings vs. Dow Jones Industrial
Performance |
| Timeline |
SHF Holdings and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
SHF Holdings
Pair trading matchups for SHF Holdings
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with SHF Holdings and Dow Jones
The main advantage of trading using opposite SHF Holdings and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SHF Holdings 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.| SHF Holdings vs. Finward Bancorp | SHF Holdings vs. Northfield Bancorp | SHF Holdings vs. Community West Bancshares | SHF Holdings vs. First Community |
| Dow Jones vs. Wizz Air Holdings | Dow Jones vs. Orion Office Reit | Dow Jones vs. Sinclair Broadcast Group | Dow Jones vs. Ryanair Holdings PLC |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| AI Portfolio Prophet Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |