Correlation Between Tilray and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Tilray 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 Tilray and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tilray Inc and Dow Jones Industrial, you can compare the effects of market volatilities on Tilray 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 Tilray with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tilray and Dow Jones.
Diversification Opportunities for Tilray and Dow Jones
Modest diversification
The 3 months correlation between Tilray and Dow is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Tilray Inc 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 Tilray 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 Tilray Inc 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 Tilray i.e., Tilray and Dow Jones go up and down completely randomly.
Pair Corralation between Tilray and Dow Jones
Assuming the 90 days trading horizon Tilray Inc is expected to generate 15.32 times more return on investment than Dow Jones. However, Tilray is 15.32 times more volatile than Dow Jones Industrial. It trades about 0.04 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.12 per unit of risk. If you would invest 157.00 in Tilray Inc on August 16, 2025 and sell it today you would lose (5.00) from holding Tilray Inc or give up 3.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.44% |
| Values | Daily Returns |
Tilray Inc vs. Dow Jones Industrial
Performance |
| Timeline |
Tilray and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Tilray Inc
Pair trading matchups for Tilray
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Tilray and Dow Jones
The main advantage of trading using opposite Tilray and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tilray 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.| Tilray vs. Bausch Health Companies | Tilray vs. Curaleaf Holdings | Tilray vs. Cronos Group | Tilray vs. Lifeist Wellness |
| Dow Jones vs. Spirent Communications plc | Dow Jones vs. CanSino Biologics | Dow Jones vs. Hutchison Telecommunications Hong | Dow Jones vs. Cass Information Systems |
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 CEOs Directory module to screen CEOs from public companies around the world.
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