This module allows you to analyze existing cross correlation between DOW and Joy Global Inc. You can compare the effects of market volatilities on DOW and Joy Global 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 with a short position of Joy Global. See also your portfolio center
. Please also check ongoing floating volatility patterns of DOW
and Joy Global
DOW vs Joy Global Inc
If you would invest 2,475,475 in DOW on December 19, 2017 and sell it today you would earn a total of 103,811 from holding DOW or generate 4.19% return on investment over 30 days.
|Time Period||1 Month [change]|
Very poor diversification
Overlapping area represents the amount of risk that can be diversified away by holding DOW and Joy Global Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Joy Global Inc and DOW 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 are associated (or correlated) with Joy Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Joy Global Inc has no effect on the direction of DOW i.e. DOW and Joy Global go up and down completely randomly.