Correlation Between Global X and Dow Jones
Specify exactly 2 symbols:
By analyzing existing cross correlation between Global X NASDAQ and Dow Jones Industrial, you can compare the effects of market volatilities on Global X 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 Global X with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global X and Dow Jones.
Diversification Opportunities for Global X and Dow Jones
Almost no diversification
The 3 months correlation between Global and Dow is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Global X NASDAQ 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 Global X 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 Global X NASDAQ 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 Global X i.e., Global X and Dow Jones go up and down completely randomly.
Pair Corralation between Global X and Dow Jones
Assuming the 90 days trading horizon Global X NASDAQ is expected to generate 1.59 times more return on investment than Dow Jones. However, Global X is 1.59 times more volatile than Dow Jones Industrial. It trades about 0.05 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.0 per unit of risk. If you would invest 1,631 in Global X NASDAQ on September 13, 2024 and sell it today you would earn a total of 14.00 from holding Global X NASDAQ or generate 0.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Global X NASDAQ vs. Dow Jones Industrial
Performance |
| Timeline |
Global X and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Global X NASDAQ
Pair trading matchups for Global X
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Global X and Dow Jones
The main advantage of trading using opposite Global X and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global X 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.| Global X vs. UBS Fund Solutions | Global X vs. Xtrackers II | Global X vs. Xtrackers Nikkei 225 | Global X vs. iShares VII PLC |
| Dow Jones vs. Hurco Companies | Dow Jones vs. Tyson Foods | Dow Jones vs. MYR Group | Dow Jones vs. Cannae Holdings |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| 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 | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |