Correlation Between DNB Global and Dow Jones
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By analyzing existing cross correlation between DNB Global Indeks and Dow Jones Industrial, you can compare the effects of market volatilities on DNB Global 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 DNB Global with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of DNB Global and Dow Jones.
Diversification Opportunities for DNB Global and Dow Jones
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between DNB and Dow is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding DNB Global Indeks 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 DNB Global 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 DNB Global Indeks 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 DNB Global i.e., DNB Global and Dow Jones go up and down completely randomly.
Pair Corralation between DNB Global and Dow Jones
Assuming the 90 days trading horizon DNB Global Indeks is expected to generate 1.19 times more return on investment than Dow Jones. However, DNB Global is 1.19 times more volatile than Dow Jones Industrial. It trades about 0.11 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.11 per unit of risk. If you would invest 56,514 in DNB Global Indeks on September 12, 2024 and sell it today you would earn a total of 20,840 from holding DNB Global Indeks or generate 36.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.94% |
| Values | Daily Returns |
DNB Global Indeks vs. Dow Jones Industrial
Performance |
| Timeline |
DNB Global and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
DNB Global Indeks
Pair trading matchups for DNB Global
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with DNB Global and Dow Jones
The main advantage of trading using opposite DNB Global and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DNB Global 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.| DNB Global vs. DNB Norge Selektiv | DNB Global vs. KLP AksjeNorge Indeks | DNB Global vs. Storebrand Global Solutions | DNB Global vs. Nordea 1 |
| Dow Jones vs. Aeye Inc | Dow Jones vs. Gentex | Dow Jones vs. Marine Products | Dow Jones vs. CarsalesCom Ltd ADR |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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