Correlation Between FLAT GLASS and Dow Jones
Can any of the company-specific risk be diversified away by investing in both FLAT GLASS 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 FLAT GLASS and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FLAT GLASS GROUP and Dow Jones Industrial, you can compare the effects of market volatilities on FLAT GLASS 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 FLAT GLASS with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of FLAT GLASS and Dow Jones.
Diversification Opportunities for FLAT GLASS and Dow Jones
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between FLAT and Dow is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding FLAT GLASS GROUP 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 FLAT GLASS 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 FLAT GLASS GROUP 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 FLAT GLASS i.e., FLAT GLASS and Dow Jones go up and down completely randomly.
Pair Corralation between FLAT GLASS and Dow Jones
Assuming the 90 days horizon FLAT GLASS GROUP is expected to generate 3.46 times more return on investment than Dow Jones. However, FLAT GLASS is 3.46 times more volatile than Dow Jones Industrial. It trades about 0.02 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about -0.02 per unit of risk. If you would invest 137.00 in FLAT GLASS GROUP on December 27, 2024 and sell it today you would earn a total of 1.00 from holding FLAT GLASS GROUP or generate 0.73% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 96.77% |
Values | Daily Returns |
FLAT GLASS GROUP vs. Dow Jones Industrial
Performance |
Timeline |
FLAT GLASS and Dow Jones Volatility Contrast
Predicted Return Density |
Returns |
FLAT GLASS GROUP
Pair trading matchups for FLAT GLASS
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with FLAT GLASS and Dow Jones
The main advantage of trading using opposite FLAT GLASS and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FLAT GLASS 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.FLAT GLASS vs. Jacquet Metal Service | FLAT GLASS vs. ARDAGH METAL PACDL 0001 | FLAT GLASS vs. Perseus Mining Limited | FLAT GLASS vs. FIREWEED METALS P |
Dow Jones vs. Pintec Technology Holdings | Dow Jones vs. Artisan Partners Asset | Dow Jones vs. Chiba Bank Ltd | Dow Jones vs. Alvotech |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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