Correlation Between Geron and Dow Jones
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By analyzing existing cross correlation between Geron Co and Dow Jones Industrial, you can compare the effects of market volatilities on Geron 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 Geron with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Geron and Dow Jones.
Diversification Opportunities for Geron and Dow Jones
Poor diversification
The 3 months correlation between Geron and Dow is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Geron Co 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 Geron 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 Geron Co 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 Geron i.e., Geron and Dow Jones go up and down completely randomly.
Pair Corralation between Geron and Dow Jones
Assuming the 90 days trading horizon Geron Co is expected to generate 4.58 times more return on investment than Dow Jones. However, Geron is 4.58 times more volatile than Dow Jones Industrial. It trades about 0.03 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.1 per unit of risk. If you would invest 1,519 in Geron Co on September 12, 2024 and sell it today you would earn a total of 171.00 from holding Geron Co or generate 11.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.97% |
| Values | Daily Returns |
Geron Co vs. Dow Jones Industrial
Performance |
| Timeline |
Geron and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Geron and Dow Jones
The main advantage of trading using opposite Geron and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Geron 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.| Geron vs. LianChuang Electronic Technology | Geron vs. Semiconductor Manufacturing Electronics | Geron vs. Fujian Newland Computer | Geron vs. Integrated Electronic Systems |
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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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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