Correlation Between Dow Jones and CSG Holding
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By analyzing existing cross correlation between Dow Jones Industrial and CSG Holding Co, you can compare the effects of market volatilities on Dow Jones and CSG Holding 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 Dow Jones with a short position of CSG Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and CSG Holding.
Diversification Opportunities for Dow Jones and CSG Holding
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Dow and CSG is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial and CSG Holding Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSG Holding and Dow Jones 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 Dow Jones Industrial are associated (or correlated) with CSG Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSG Holding has no effect on the direction of Dow Jones i.e., Dow Jones and CSG Holding go up and down completely randomly.
Pair Corralation between Dow Jones and CSG Holding
Assuming the 90 days trading horizon Dow Jones Industrial is expected to generate 0.53 times more return on investment than CSG Holding. However, Dow Jones Industrial is 1.89 times less risky than CSG Holding. It trades about 0.09 of its potential returns per unit of risk. CSG Holding Co is currently generating about -0.02 per unit of risk. If you would invest 3,187,457 in Dow Jones Industrial on December 4, 2024 and sell it today you would earn a total of 1,131,667 from holding Dow Jones Industrial or generate 35.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 96.36% |
| Values | Daily Returns |
Dow Jones Industrial vs. CSG Holding Co
Performance |
| Timeline |
Dow Jones and CSG Holding Volatility Contrast
Predicted Return Density |
| Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
CSG Holding Co
Pair trading matchups for CSG Holding
Pair Trading with Dow Jones and CSG Holding
The main advantage of trading using opposite Dow Jones and CSG Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones position performs unexpectedly, CSG Holding 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 CSG Holding will offset losses from the drop in CSG Holding's long position.| Dow Jones vs. Balchem | Dow Jones vs. Merit Medical Systems | Dow Jones vs. American Vanguard | Dow Jones vs. Regeneron Pharmaceuticals |
| CSG Holding vs. Jilin Chemical Fibre | CSG Holding vs. Servyou Software Group | CSG Holding vs. Miracll Chemicals Co | CSG Holding vs. Jinsanjiang Silicon Material |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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