Correlation Between Dow Jones and GLENLN
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By analyzing existing cross correlation between Dow Jones Industrial and GLENLN 4 27 MAR 27, you can compare the effects of market volatilities on Dow Jones and GLENLN 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 GLENLN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and GLENLN.
Diversification Opportunities for Dow Jones and GLENLN
Average diversification
The 3 months correlation between Dow and GLENLN is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial and GLENLN 4 27 MAR 27 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GLENLN 4 27 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 GLENLN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GLENLN 4 27 has no effect on the direction of Dow Jones i.e., Dow Jones and GLENLN go up and down completely randomly.
Pair Corralation between Dow Jones and GLENLN
Assuming the 90 days trading horizon Dow Jones Industrial is expected to generate 2.32 times more return on investment than GLENLN. However, Dow Jones is 2.32 times more volatile than GLENLN 4 27 MAR 27. It trades about 0.12 of its potential returns per unit of risk. GLENLN 4 27 MAR 27 is currently generating about 0.01 per unit of risk. If you would invest 3,383,361 in Dow Jones Industrial on August 31, 2024 and sell it today you would earn a total of 1,107,704 from holding Dow Jones Industrial or generate 32.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 76.47% |
| Values | Daily Returns |
Dow Jones Industrial vs. GLENLN 4 27 MAR 27
Performance |
| Timeline |
Dow Jones and GLENLN Volatility Contrast
Predicted Return Density |
| Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
GLENLN 4 27 MAR 27
Pair trading matchups for GLENLN
Pair Trading with Dow Jones and GLENLN
The main advantage of trading using opposite Dow Jones and GLENLN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones position performs unexpectedly, GLENLN 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 GLENLN will offset losses from the drop in GLENLN's long position.| Dow Jones vs. Aerofoam Metals | Dow Jones vs. ACG Metals Limited | Dow Jones vs. China Clean Energy | Dow Jones vs. Fast Retailing Co |
| GLENLN vs. KNOT Offshore Partners | GLENLN vs. Integral Ad Science | GLENLN vs. Tencent Music Entertainment | GLENLN vs. National CineMedia |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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