Correlation Between Gunung Raja and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Gunung Raja 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 Gunung Raja and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gunung Raja Paksi and Dow Jones Industrial, you can compare the effects of market volatilities on Gunung Raja 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 Gunung Raja with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gunung Raja and Dow Jones.
Diversification Opportunities for Gunung Raja and Dow Jones
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Gunung and Dow is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Gunung Raja Paksi 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 Gunung Raja 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 Gunung Raja Paksi 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 Gunung Raja i.e., Gunung Raja and Dow Jones go up and down completely randomly.
Pair Corralation between Gunung Raja and Dow Jones
Assuming the 90 days trading horizon Gunung Raja Paksi is expected to generate 12.69 times more return on investment than Dow Jones. However, Gunung Raja is 12.69 times more volatile than Dow Jones Industrial. It trades about 0.04 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.14 per unit of risk. If you would invest 18,116 in Gunung Raja Paksi on September 3, 2024 and sell it today you would earn a total of 3,084 from holding Gunung Raja Paksi or generate 17.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.26% |
| Values | Daily Returns |
Gunung Raja Paksi vs. Dow Jones Industrial
Performance |
| Timeline |
Gunung Raja and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Gunung Raja Paksi
Pair trading matchups for Gunung Raja
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Gunung Raja and Dow Jones
The main advantage of trading using opposite Gunung Raja and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gunung Raja 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.| Gunung Raja vs. Gunawan Dianjaya Steel | Gunung Raja vs. Steel Pipe Industry | Gunung Raja vs. Ifishdeco PT | Gunung Raja vs. Saraswanti Anugerah Makmur |
| Dow Jones vs. Eastern Co | Dow Jones vs. Uber Technologies | Dow Jones vs. AKITA Drilling | Dow Jones vs. Chemours Co |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |