Correlation Between ETF Opportunities and DOW JONES

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both ETF Opportunities 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 ETF Opportunities and DOW JONES into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ETF Opportunities Trust and DOW JONES INDUSTRIAL, you can compare the effects of market volatilities on ETF Opportunities 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 ETF Opportunities with a short position of DOW JONES. Check out your portfolio center. Please also check ongoing floating volatility patterns of ETF Opportunities and DOW JONES.

Diversification Opportunities for ETF Opportunities and DOW JONES

-0.3
  Correlation Coefficient

Very good diversification

The 3 months correlation between ETF Opportunities and DOW JONES is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding ETF Opportunities Trust 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 ETF Opportunities 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 ETF Opportunities Trust 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 ETF Opportunities i.e., ETF Opportunities and DOW JONES go up and down completely randomly.
    Optimize

Pair Corralation between ETF Opportunities and DOW JONES

Given the investment horizon of 90 days ETF Opportunities is expected to generate 1.24 times less return on investment than DOW JONES. In addition to that, ETF Opportunities is 1.61 times more volatile than DOW JONES INDUSTRIAL. It trades about 0.21 of its total potential returns per unit of risk. DOW JONES INDUSTRIAL is currently generating about 0.43 per unit of volatility. If you would invest  3,313,637  in DOW JONES INDUSTRIAL on November 2, 2022 and sell it today you would earn a total of  116,624  from holding DOW JONES INDUSTRIAL or generate 3.52% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy50.0%
ValuesDaily Returns

ETF Opportunities Trust  vs.  DOW JONES INDUSTRIAL

 Performance (%) 
       Timeline  

ETF Opportunities and DOW JONES Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with ETF Opportunities and DOW JONES

The main advantage of trading using opposite ETF Opportunities and DOW JONES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ETF Opportunities 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's long position.
ETF Opportunities vs. HUMANA INC
ETF Opportunities vs. Unified Series Trust
ETF Opportunities vs. Barloworld Ltd ADR
ETF Opportunities vs. PINNACLE SHERMAN MULTI-STRATEGY
The idea behind ETF Opportunities Trust and DOW JONES INDUSTRIAL pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
DOW JONES vs. Texas Roadhouse
DOW JONES vs. Starbucks
DOW JONES vs. Amphenol
DOW JONES vs. AutoNation
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.

Other Complementary Tools

Efficient Frontier
Plot and analyze your portfolio and positions against risk-return landscape of the market.
Portfolio File Import
Quickly import all of your third-party portfolios from your local drive in csv format
Idea Optimizer
Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio
Portfolio Manager
State of the art Portfolio Manager to monitor and improve performance of your invested capital
Focused Opportunities
Build portfolios using our predefined set of ideas and optimize them against your investing preferences
Price Exposure Probability
Analyze equity upside and downside potential for a given time horizon across multiple markets
Idea Analyzer
Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas
Piotroski F Score
Get Piotroski F Score based on binary analysis strategy of nine different fundamentals