Correlation Between G2 Goldfields and Dow Jones
Can any of the company-specific risk be diversified away by investing in both G2 Goldfields 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 G2 Goldfields and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between G2 Goldfields and Dow Jones Industrial, you can compare the effects of market volatilities on G2 Goldfields 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 G2 Goldfields with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of G2 Goldfields and Dow Jones.
Diversification Opportunities for G2 Goldfields and Dow Jones
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between GUYGF and Dow is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding G2 Goldfields 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 G2 Goldfields 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 G2 Goldfields 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 G2 Goldfields i.e., G2 Goldfields and Dow Jones go up and down completely randomly.
Pair Corralation between G2 Goldfields and Dow Jones
Assuming the 90 days horizon G2 Goldfields is expected to under-perform the Dow Jones. In addition to that, G2 Goldfields is 3.95 times more volatile than Dow Jones Industrial. It trades about -0.07 of its total potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.22 per unit of volatility. If you would invest 4,238,757 in Dow Jones Industrial on August 27, 2024 and sell it today you would earn a total of 190,894 from holding Dow Jones Industrial or generate 4.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
G2 Goldfields vs. Dow Jones Industrial
Performance |
| Timeline |
G2 Goldfields and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
G2 Goldfields
Pair trading matchups for G2 Goldfields
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with G2 Goldfields and Dow Jones
The main advantage of trading using opposite G2 Goldfields and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if G2 Goldfields 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.| G2 Goldfields vs. Aurion Resources | G2 Goldfields vs. Liberty Gold Corp | G2 Goldfields vs. Orezone Gold Corp | G2 Goldfields vs. Radisson Mining Resources |
| 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |