Correlation Between Cassiar Gold and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Cassiar Gold 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 Cassiar Gold and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cassiar Gold Corp and Dow Jones Industrial, you can compare the effects of market volatilities on Cassiar Gold 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 Cassiar Gold with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cassiar Gold and Dow Jones.
Diversification Opportunities for Cassiar Gold and Dow Jones
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Cassiar and Dow is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Cassiar Gold Corp 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 Cassiar Gold 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 Cassiar Gold Corp 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 Cassiar Gold i.e., Cassiar Gold and Dow Jones go up and down completely randomly.
Pair Corralation between Cassiar Gold and Dow Jones
Assuming the 90 days trading horizon Cassiar Gold Corp is expected to under-perform the Dow Jones. In addition to that, Cassiar Gold is 6.08 times more volatile than Dow Jones Industrial. It trades about -0.02 of its total potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.11 per unit of volatility. If you would invest 3,547,313 in Dow Jones Industrial on August 29, 2024 and sell it today you would earn a total of 924,893 from holding Dow Jones Industrial or generate 26.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.4% |
| Values | Daily Returns |
Cassiar Gold Corp vs. Dow Jones Industrial
Performance |
| Timeline |
Cassiar Gold and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Cassiar Gold Corp
Pair trading matchups for Cassiar Gold
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Cassiar Gold and Dow Jones
The main advantage of trading using opposite Cassiar Gold and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cassiar Gold 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.| Cassiar Gold vs. Quisitive Technology Solutions | Cassiar Gold vs. Exco Technologies Limited | Cassiar Gold vs. Evertz Technologies Limited | Cassiar Gold vs. NorthWest Healthcare Properties |
| Dow Jones vs. Kaltura | Dow Jones vs. Artisan Partners Asset | Dow Jones vs. US Global Investors | Dow Jones vs. Analog Devices |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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