Correlation Between Gateway Fund and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Gateway Fund 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 Gateway Fund and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gateway Fund Class and Dow Jones Industrial, you can compare the effects of market volatilities on Gateway Fund 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 Gateway Fund with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gateway Fund and Dow Jones.
Diversification Opportunities for Gateway Fund and Dow Jones
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between GATEWAY and Dow is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Gateway Fund Class 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 Gateway Fund 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 Gateway Fund Class 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 Gateway Fund i.e., Gateway Fund and Dow Jones go up and down completely randomly.
Pair Corralation between Gateway Fund and Dow Jones
Assuming the 90 days horizon Gateway Fund is expected to generate 2.4 times less return on investment than Dow Jones. But when comparing it to its historical volatility, Gateway Fund Class is 1.84 times less risky than Dow Jones. It trades about 0.2 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 4,238,757 in Dow Jones Industrial on August 28, 2024 and sell it today you would earn a total of 234,900 from holding Dow Jones Industrial or generate 5.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gateway Fund Class vs. Dow Jones Industrial
Performance |
| Timeline |
Gateway Fund and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Gateway Fund Class
Pair trading matchups for Gateway Fund
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Gateway Fund and Dow Jones
The main advantage of trading using opposite Gateway Fund and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gateway Fund 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.| Gateway Fund vs. Allianzgi Vertible Fund | Gateway Fund vs. Franklin Vertible Securities | Gateway Fund vs. Putnam Convertible Incm Gwth | Gateway Fund vs. Gabelli Convertible And |
| Dow Jones vs. Meiwu Technology Co | Dow Jones vs. 17 Education Technology | Dow Jones vs. 51Talk Online Education | Dow Jones vs. Afya |
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
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |