Correlation Between NEWGOLD EXCHANGE and Dow Jones
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By analyzing existing cross correlation between NEWGOLD EXCHANGE TRADED and Dow Jones Industrial, you can compare the effects of market volatilities on NEWGOLD EXCHANGE 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 NEWGOLD EXCHANGE with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of NEWGOLD EXCHANGE and Dow Jones.
Diversification Opportunities for NEWGOLD EXCHANGE and Dow Jones
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between NEWGOLD and Dow is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding NEWGOLD EXCHANGE TRADED 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 NEWGOLD EXCHANGE 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 NEWGOLD EXCHANGE TRADED 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 NEWGOLD EXCHANGE i.e., NEWGOLD EXCHANGE and Dow Jones go up and down completely randomly.
Pair Corralation between NEWGOLD EXCHANGE and Dow Jones
Assuming the 90 days trading horizon NEWGOLD EXCHANGE TRADED is expected to generate 18.12 times more return on investment than Dow Jones. However, NEWGOLD EXCHANGE is 18.12 times more volatile than Dow Jones Industrial. It trades about 0.2 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.01 per unit of risk. If you would invest 3,000,000 in NEWGOLD EXCHANGE TRADED on September 19, 2024 and sell it today you would earn a total of 1,200,000 from holding NEWGOLD EXCHANGE TRADED or generate 40.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
NEWGOLD EXCHANGE TRADED vs. Dow Jones Industrial
Performance |
| Timeline |
NEWGOLD EXCHANGE and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
NEWGOLD EXCHANGE TRADED
Pair trading matchups for NEWGOLD EXCHANGE
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with NEWGOLD EXCHANGE and Dow Jones
The main advantage of trading using opposite NEWGOLD EXCHANGE and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NEWGOLD EXCHANGE 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.| NEWGOLD EXCHANGE vs. GUINEA INSURANCE PLC | NEWGOLD EXCHANGE vs. SECURE ELECTRONIC TECHNOLOGY | NEWGOLD EXCHANGE vs. VFD GROUP | NEWGOLD EXCHANGE vs. IKEJA HOTELS PLC |
| Dow Jones vs. Mangazeya Mining | Dow Jones vs. Summit Materials | Dow Jones vs. Perseus Mining Limited | Dow Jones vs. AMCON Distributing |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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