Correlation Between CREDITACCESS GRAMEEN and Dow Jones
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By analyzing existing cross correlation between CREDITACCESS GRAMEEN LIMITED and Dow Jones Industrial, you can compare the effects of market volatilities on CREDITACCESS GRAMEEN 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 CREDITACCESS GRAMEEN with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of CREDITACCESS GRAMEEN and Dow Jones.
Diversification Opportunities for CREDITACCESS GRAMEEN and Dow Jones
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CREDITACCESS and Dow is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding CREDITACCESS GRAMEEN LIMITED 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 CREDITACCESS GRAMEEN 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 CREDITACCESS GRAMEEN LIMITED 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 CREDITACCESS GRAMEEN i.e., CREDITACCESS GRAMEEN and Dow Jones go up and down completely randomly.
Pair Corralation between CREDITACCESS GRAMEEN and Dow Jones
Assuming the 90 days trading horizon CREDITACCESS GRAMEEN is expected to generate 1.02 times less return on investment than Dow Jones. In addition to that, CREDITACCESS GRAMEEN is 3.28 times more volatile than Dow Jones Industrial. It trades about 0.02 of its total potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.07 per unit of volatility. If you would invest 3,362,956 in Dow Jones Industrial on October 12, 2024 and sell it today you would earn a total of 900,564 from holding Dow Jones Industrial or generate 26.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.19% |
| Values | Daily Returns |
CREDITACCESS GRAMEEN LIMITED vs. Dow Jones Industrial
Performance |
| Timeline |
CREDITACCESS GRAMEEN and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
CREDITACCESS GRAMEEN LIMITED
Pair trading matchups for CREDITACCESS GRAMEEN
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with CREDITACCESS GRAMEEN and Dow Jones
The main advantage of trading using opposite CREDITACCESS GRAMEEN and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CREDITACCESS GRAMEEN 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.| CREDITACCESS GRAMEEN vs. SBI Life Insurance | CREDITACCESS GRAMEEN vs. Shaily Engineering Plastics | CREDITACCESS GRAMEEN vs. Sakar Healthcare Limited | CREDITACCESS GRAMEEN vs. Varun Beverages Limited |
| 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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