Correlation Between GREENWICH ASSET and Dow Jones
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By analyzing existing cross correlation between GREENWICH ASSET ETF and Dow Jones Industrial, you can compare the effects of market volatilities on GREENWICH ASSET 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 GREENWICH ASSET with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of GREENWICH ASSET and Dow Jones.
Diversification Opportunities for GREENWICH ASSET and Dow Jones
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GREENWICH and Dow is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding GREENWICH ASSET ETF 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 GREENWICH ASSET 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 GREENWICH ASSET ETF 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 GREENWICH ASSET i.e., GREENWICH ASSET and Dow Jones go up and down completely randomly.
Pair Corralation between GREENWICH ASSET and Dow Jones
Assuming the 90 days trading horizon GREENWICH ASSET ETF is expected to under-perform the Dow Jones. In addition to that, GREENWICH ASSET is 5.22 times more volatile than Dow Jones Industrial. It trades about -0.17 of its total potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.24 per unit of volatility. If you would invest 4,034,541 in Dow Jones Industrial on September 6, 2024 and sell it today you would earn a total of 466,863 from holding Dow Jones Industrial or generate 11.57% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 96.88% |
Values | Daily Returns |
GREENWICH ASSET ETF vs. Dow Jones Industrial
Performance |
Timeline |
GREENWICH ASSET and Dow Jones Volatility Contrast
Predicted Return Density |
Returns |
GREENWICH ASSET ETF
Pair trading matchups for GREENWICH ASSET
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with GREENWICH ASSET and Dow Jones
The main advantage of trading using opposite GREENWICH ASSET and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GREENWICH ASSET 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.GREENWICH ASSET vs. VETIVA BANKING ETF | GREENWICH ASSET vs. VETIVA INDUSTRIAL ETF | GREENWICH ASSET vs. BUA FOODS PLC | GREENWICH ASSET vs. MULTI TREX INTEGRATED FOODS |
Dow Jones vs. NI Holdings | Dow Jones vs. GMS Inc | Dow Jones vs. QBE Insurance Group | Dow Jones vs. Direct Line Insurance |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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