Correlation Between JS Global and Dow Jones
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By analyzing existing cross correlation between JS Global Banking and Dow Jones Industrial, you can compare the effects of market volatilities on JS Global 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 JS Global with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of JS Global and Dow Jones.
Diversification Opportunities for JS Global and Dow Jones
Very poor diversification
The 3 months correlation between JSGBETF and Dow is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding JS Global Banking 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 JS Global 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 JS Global Banking 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 JS Global i.e., JS Global and Dow Jones go up and down completely randomly.
Pair Corralation between JS Global and Dow Jones
Assuming the 90 days trading horizon JS Global Banking is expected to generate 2.58 times more return on investment than Dow Jones. However, JS Global is 2.58 times more volatile than Dow Jones Industrial. It trades about 0.31 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.37 per unit of risk. If you would invest 1,870 in JS Global Banking on September 1, 2024 and sell it today you would earn a total of 305.00 from holding JS Global Banking or generate 16.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
JS Global Banking vs. Dow Jones Industrial
Performance |
| Timeline |
JS Global and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
JS Global Banking
Pair trading matchups for JS Global
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with JS Global and Dow Jones
The main advantage of trading using opposite JS Global and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JS Global 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.| JS Global vs. Beco Steel | JS Global vs. Dost Steels | JS Global vs. Pak Gulf Leasing | JS Global vs. Habib Insurance |
| Dow Jones vs. Catalyst Pharmaceuticals | Dow Jones vs. Sphere Entertainment Co | Dow Jones vs. National CineMedia | Dow Jones vs. Mink Therapeutics |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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