Correlation Between Dow Jones and Glassbox
Can any of the company-specific risk be diversified away by investing in both Dow Jones and Glassbox at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Dow Jones and Glassbox into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dow Jones Industrial and Glassbox, you can compare the effects of market volatilities on Dow Jones and Glassbox 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 Glassbox. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and Glassbox.
Diversification Opportunities for Dow Jones and Glassbox
Good diversification
The 3 months correlation between Dow and Glassbox is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial and Glassbox in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Glassbox 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 Glassbox. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Glassbox has no effect on the direction of Dow Jones i.e., Dow Jones and Glassbox go up and down completely randomly.
Pair Corralation between Dow Jones and Glassbox
If you would invest 4,176,346 in Dow Jones Industrial on September 1, 2024 and sell it today you would earn a total of 314,719 from holding Dow Jones Industrial or generate 7.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 14.29% |
| Values | Daily Returns |
Dow Jones Industrial vs. Glassbox
Performance |
| Timeline |
Dow Jones and Glassbox Volatility Contrast
Predicted Return Density |
| Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
Glassbox
Pair trading matchups for Glassbox
Pair Trading with Dow Jones and Glassbox
The main advantage of trading using opposite Dow Jones and Glassbox positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones position performs unexpectedly, Glassbox 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 Glassbox will offset losses from the drop in Glassbox's long position.| Dow Jones vs. Catalyst Pharmaceuticals | Dow Jones vs. Sphere Entertainment Co | Dow Jones vs. National CineMedia | Dow Jones vs. Mink Therapeutics |
| Glassbox vs. Bio Meat Foodtech | Glassbox vs. Scope Metals Group | Glassbox vs. Alrov Properties Lodgings | Glassbox vs. Israel China Biotechnology |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |