Correlation Between GOME Retail and Dow Jones
Can any of the company-specific risk be diversified away by investing in both GOME Retail 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 GOME Retail and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GOME Retail Holdings and Dow Jones Industrial, you can compare the effects of market volatilities on GOME Retail 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 GOME Retail with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of GOME Retail and Dow Jones.
Diversification Opportunities for GOME Retail and Dow Jones
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between GOME and Dow is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding GOME Retail Holdings 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 GOME Retail 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 GOME Retail Holdings 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 GOME Retail i.e., GOME Retail and Dow Jones go up and down completely randomly.
Pair Corralation between GOME Retail and Dow Jones
If you would invest 0.10 in GOME Retail Holdings on October 11, 2024 and sell it today you would earn a total of 0.00 from holding GOME Retail Holdings or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 80.95% |
Values | Daily Returns |
GOME Retail Holdings vs. Dow Jones Industrial
Performance |
Timeline |
GOME Retail and Dow Jones Volatility Contrast
Predicted Return Density |
Returns |
GOME Retail Holdings
Pair trading matchups for GOME Retail
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with GOME Retail and Dow Jones
The main advantage of trading using opposite GOME Retail and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GOME Retail 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.GOME Retail vs. Playtech plc | GOME Retail vs. PLAYTECH | GOME Retail vs. Addtech AB | GOME Retail vs. Playmates Toys Limited |
Dow Jones vs. Thai Beverage PCL | Dow Jones vs. ServiceNow | Dow Jones vs. Loud Beverage Group | Dow Jones vs. Suntory Beverage Food |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |