Correlation Between GUOMAI Culture and Dow Jones
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By analyzing existing cross correlation between GUOMAI Culture Media and Dow Jones Industrial, you can compare the effects of market volatilities on GUOMAI Culture 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 GUOMAI Culture with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of GUOMAI Culture and Dow Jones.
Diversification Opportunities for GUOMAI Culture and Dow Jones
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between GUOMAI and Dow is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding GUOMAI Culture Media 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 GUOMAI Culture 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 GUOMAI Culture Media 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 GUOMAI Culture i.e., GUOMAI Culture and Dow Jones go up and down completely randomly.
Pair Corralation between GUOMAI Culture and Dow Jones
Assuming the 90 days trading horizon GUOMAI Culture Media is expected to generate 6.98 times more return on investment than Dow Jones. However, GUOMAI Culture is 6.98 times more volatile than Dow Jones Industrial. It trades about 0.04 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.07 per unit of risk. If you would invest 1,815 in GUOMAI Culture Media on October 12, 2024 and sell it today you would earn a total of 622.00 from holding GUOMAI Culture Media or generate 34.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 96.17% |
| Values | Daily Returns |
GUOMAI Culture Media vs. Dow Jones Industrial
Performance |
| Timeline |
GUOMAI Culture and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
GUOMAI Culture Media
Pair trading matchups for GUOMAI Culture
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with GUOMAI Culture and Dow Jones
The main advantage of trading using opposite GUOMAI Culture and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GUOMAI Culture 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.| GUOMAI Culture vs. Anhui Jianghuai Automobile | GUOMAI Culture vs. Dareway Software Co | GUOMAI Culture vs. GuoChuang Software Co | GUOMAI Culture vs. Fujian Boss Software |
| Dow Jones vs. Lululemon Athletica | Dow Jones vs. Vistra Energy Corp | Dow Jones vs. The Gap, | Dow Jones vs. Pool Corporation |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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