Correlation Between Guangdong Brandmax and Dow Jones
Specify exactly 2 symbols:
By analyzing existing cross correlation between Guangdong Brandmax Marketing and Dow Jones Industrial, you can compare the effects of market volatilities on Guangdong Brandmax 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 Guangdong Brandmax with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Brandmax and Dow Jones.
Diversification Opportunities for Guangdong Brandmax and Dow Jones
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guangdong and Dow is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Brandmax Marketing 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 Guangdong Brandmax 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 Guangdong Brandmax Marketing 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 Guangdong Brandmax i.e., Guangdong Brandmax and Dow Jones go up and down completely randomly.
Pair Corralation between Guangdong Brandmax and Dow Jones
Assuming the 90 days trading horizon Guangdong Brandmax Marketing is expected to generate 6.36 times more return on investment than Dow Jones. However, Guangdong Brandmax is 6.36 times more volatile than Dow Jones Industrial. It trades about 0.18 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.19 per unit of risk. If you would invest 665.00 in Guangdong Brandmax Marketing on September 8, 2024 and sell it today you would earn a total of 351.00 from holding Guangdong Brandmax Marketing or generate 52.78% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 90.77% |
Values | Daily Returns |
Guangdong Brandmax Marketing vs. Dow Jones Industrial
Performance |
Timeline |
Guangdong Brandmax and Dow Jones Volatility Contrast
Predicted Return Density |
Returns |
Guangdong Brandmax Marketing
Pair trading matchups for Guangdong Brandmax
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Guangdong Brandmax and Dow Jones
The main advantage of trading using opposite Guangdong Brandmax and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Brandmax 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.Guangdong Brandmax vs. Agricultural Bank of | Guangdong Brandmax vs. Industrial and Commercial | Guangdong Brandmax vs. Bank of China | Guangdong Brandmax vs. PetroChina Co Ltd |
Dow Jones vs. JBG SMITH Properties | Dow Jones vs. Weyco Group | Dow Jones vs. Western Sierra Mining | Dow Jones vs. Summit Materials |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
Bonds Directory Find actively traded corporate debentures issued by US companies | |
ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |