Correlation Between Grupa KTY and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Grupa KTY 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 Grupa KTY and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grupa KTY SA and Dow Jones Industrial, you can compare the effects of market volatilities on Grupa KTY 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 Grupa KTY with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupa KTY and Dow Jones.
Diversification Opportunities for Grupa KTY and Dow Jones
Very good diversification
The 3 months correlation between Grupa and Dow is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Grupa KTY SA 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 Grupa KTY 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 Grupa KTY SA 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 Grupa KTY i.e., Grupa KTY and Dow Jones go up and down completely randomly.
Pair Corralation between Grupa KTY and Dow Jones
Assuming the 90 days trading horizon Grupa KTY SA is expected to generate 2.18 times more return on investment than Dow Jones. However, Grupa KTY is 2.18 times more volatile than Dow Jones Industrial. It trades about 0.15 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.29 per unit of risk. If you would invest 67,000 in Grupa KTY SA on September 6, 2024 and sell it today you would earn a total of 4,200 from holding Grupa KTY SA or generate 6.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grupa KTY SA vs. Dow Jones Industrial
Performance |
| Timeline |
Grupa KTY and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Grupa KTY SA
Pair trading matchups for Grupa KTY
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Grupa KTY and Dow Jones
The main advantage of trading using opposite Grupa KTY and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupa KTY 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.| Grupa KTY vs. Gamedust SA | Grupa KTY vs. Ultimate Games SA | Grupa KTY vs. Movie Games SA | Grupa KTY vs. Gaming Factory SA |
| Dow Jones vs. NI Holdings | Dow Jones vs. GMS Inc | Dow Jones vs. QBE Insurance Group | Dow Jones vs. Direct Line Insurance |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |