Correlation Between Glen Eagle and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Glen Eagle and Dow Jones 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 Glen Eagle and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Glen Eagle Resources and Dow Jones Industrial, you can compare the effects of market volatilities on Glen Eagle 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 Glen Eagle with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Glen Eagle and Dow Jones.
Diversification Opportunities for Glen Eagle and Dow Jones
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Glen and Dow is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Glen Eagle Resources 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 Glen Eagle 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 Glen Eagle Resources 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 Glen Eagle i.e., Glen Eagle and Dow Jones go up and down completely randomly.
Pair Corralation between Glen Eagle and Dow Jones
If you would invest 4,237,436 in Dow Jones Industrial on August 25, 2024 and sell it today you would earn a total of 192,215 from holding Dow Jones Industrial or generate 4.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Glen Eagle Resources vs. Dow Jones Industrial
Performance |
| Timeline |
Glen Eagle and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Glen Eagle Resources
Pair trading matchups for Glen Eagle
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Glen Eagle and Dow Jones
The main advantage of trading using opposite Glen Eagle and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Glen Eagle 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.| Glen Eagle vs. CAT Strategic Metals | Glen Eagle vs. Grizzly Discoveries | Glen Eagle vs. Silver Dollar Resources | Glen Eagle vs. Defense Metals Corp |
| Dow Jones vs. Vistra Energy Corp | Dow Jones vs. Fluence Energy | Dow Jones vs. Old Republic International | Dow Jones vs. Empresa Distribuidora y |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |