Correlation Between Dow Jones and KIM GROWTH
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By analyzing existing cross correlation between Dow Jones Industrial and KIM GROWTH VN, you can compare the effects of market volatilities on Dow Jones and KIM GROWTH 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 KIM GROWTH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and KIM GROWTH.
Diversification Opportunities for Dow Jones and KIM GROWTH
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Dow and KIM is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial and KIM GROWTH VN in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KIM GROWTH VN 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 KIM GROWTH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KIM GROWTH VN has no effect on the direction of Dow Jones i.e., Dow Jones and KIM GROWTH go up and down completely randomly.
Pair Corralation between Dow Jones and KIM GROWTH
Assuming the 90 days trading horizon Dow Jones Industrial is expected to generate 0.64 times more return on investment than KIM GROWTH. However, Dow Jones Industrial is 1.57 times less risky than KIM GROWTH. It trades about 0.26 of its potential returns per unit of risk. KIM GROWTH VN is currently generating about -0.16 per unit of risk. If you would invest 4,238,757 in Dow Jones Industrial on August 29, 2024 and sell it today you would earn a total of 247,274 from holding Dow Jones Industrial or generate 5.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 60.87% |
| Values | Daily Returns |
Dow Jones Industrial vs. KIM GROWTH VN
Performance |
| Timeline |
Dow Jones and KIM GROWTH Volatility Contrast
Predicted Return Density |
| Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
KIM GROWTH VN
Pair trading matchups for KIM GROWTH
Pair Trading with Dow Jones and KIM GROWTH
The main advantage of trading using opposite Dow Jones and KIM GROWTH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones position performs unexpectedly, KIM GROWTH 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 KIM GROWTH will offset losses from the drop in KIM GROWTH's long position.| Dow Jones vs. Kaltura | Dow Jones vs. Artisan Partners Asset | Dow Jones vs. US Global Investors | Dow Jones vs. Analog Devices |
| KIM GROWTH vs. Idico JSC | KIM GROWTH vs. Vietnam Medicinal Materials | KIM GROWTH vs. DHG Pharmaceutical JSC | KIM GROWTH vs. Alphanam ME |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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