Correlation Between Global Iman and Dow Jones
Specify exactly 2 symbols:
By analyzing existing cross correlation between Global Iman Fund and Dow Jones Industrial, you can compare the effects of market volatilities on Global Iman 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 Global Iman with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Iman and Dow Jones.
Diversification Opportunities for Global Iman and Dow Jones
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Global and Dow is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Global Iman Fund 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 Global Iman 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 Global Iman Fund 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 Global Iman i.e., Global Iman and Dow Jones go up and down completely randomly.
Pair Corralation between Global Iman and Dow Jones
Assuming the 90 days trading horizon Global Iman Fund is expected to generate 1.39 times more return on investment than Dow Jones. However, Global Iman is 1.39 times more volatile than Dow Jones Industrial. It trades about 0.09 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.09 per unit of risk. If you would invest 2,821 in Global Iman Fund on November 19, 2024 and sell it today you would earn a total of 1,486 from holding Global Iman Fund or generate 52.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Global Iman Fund vs. Dow Jones Industrial
Performance |
| Timeline |
Global Iman and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Global Iman Fund
Pair trading matchups for Global Iman
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Global Iman and Dow Jones
The main advantage of trading using opposite Global Iman and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Iman 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.| Global Iman vs. Edgepoint Global Portfolio | Global Iman vs. RBC Global Equity | Global Iman vs. Invesco Global Companies | Global Iman vs. Manulife Global Equity |
| Dow Jones vs. National CineMedia | Dow Jones vs. Emerson Radio | Dow Jones vs. Space Communication | Dow Jones vs. JD Sports Fashion |
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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |