Correlation Between LG Gerd and Dow Jones
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By analyzing existing cross correlation between LG Gerd Kommer and Dow Jones Industrial, you can compare the effects of market volatilities on LG Gerd 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 LG Gerd with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of LG Gerd and Dow Jones.
Diversification Opportunities for LG Gerd and Dow Jones
Very poor diversification
The 3 months correlation between GERD and Dow is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding LG Gerd Kommer 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 LG Gerd 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 LG Gerd Kommer 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 LG Gerd i.e., LG Gerd and Dow Jones go up and down completely randomly.
Pair Corralation between LG Gerd and Dow Jones
Assuming the 90 days trading horizon LG Gerd Kommer is expected to generate 0.85 times more return on investment than Dow Jones. However, LG Gerd Kommer is 1.17 times less risky than Dow Jones. It trades about 0.14 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.04 per unit of risk. If you would invest 1,116 in LG Gerd Kommer on September 23, 2024 and sell it today you would earn a total of 70.00 from holding LG Gerd Kommer or generate 6.27% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 98.48% |
Values | Daily Returns |
LG Gerd Kommer vs. Dow Jones Industrial
Performance |
Timeline |
LG Gerd and Dow Jones Volatility Contrast
Predicted Return Density |
Returns |
LG Gerd Kommer
Pair trading matchups for LG Gerd
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with LG Gerd and Dow Jones
The main advantage of trading using opposite LG Gerd and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LG Gerd 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.LG Gerd vs. UBS Fund Solutions | LG Gerd vs. Xtrackers II | LG Gerd vs. Xtrackers Nikkei 225 | LG Gerd vs. iShares VII PLC |
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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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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