Correlation Between Genetron Holdings and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Genetron Holdings 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 Genetron Holdings and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Genetron Holdings and Dow Jones Industrial, you can compare the effects of market volatilities on Genetron Holdings 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 Genetron Holdings with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genetron Holdings and Dow Jones.
Diversification Opportunities for Genetron Holdings and Dow Jones
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Genetron and Dow is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Genetron Holdings 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 Genetron Holdings 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 Genetron Holdings 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 Genetron Holdings i.e., Genetron Holdings and Dow Jones go up and down completely randomly.
Pair Corralation between Genetron Holdings and Dow Jones
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 247,274 from holding Dow Jones Industrial or generate 5.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Genetron Holdings vs. Dow Jones Industrial
Performance |
| Timeline |
Genetron Holdings and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Genetron Holdings
Pair trading matchups for Genetron Holdings
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Genetron Holdings and Dow Jones
The main advantage of trading using opposite Genetron Holdings and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genetron Holdings 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.| Genetron Holdings vs. Psychemedics | Genetron Holdings vs. Sera Prognostics | Genetron Holdings vs. DarioHealth Corp | Genetron Holdings vs. Biodesix |
| Dow Jones vs. CECO Environmental Corp | Dow Jones vs. Western Acquisition Ventures | Dow Jones vs. Tyson Foods | Dow Jones vs. Inflection Point Acquisition |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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