Correlation Between Strikepoint Gold and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Strikepoint Gold 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 Strikepoint Gold and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Strikepoint Gold and Dow Jones Industrial, you can compare the effects of market volatilities on Strikepoint Gold 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 Strikepoint Gold with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Strikepoint Gold and Dow Jones.
Diversification Opportunities for Strikepoint Gold and Dow Jones
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Strikepoint and Dow is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Strikepoint Gold 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 Strikepoint Gold 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 Strikepoint Gold 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 Strikepoint Gold i.e., Strikepoint Gold and Dow Jones go up and down completely randomly.
Pair Corralation between Strikepoint Gold and Dow Jones
Assuming the 90 days horizon Strikepoint Gold is expected to generate 18.48 times more return on investment than Dow Jones. However, Strikepoint Gold is 18.48 times more volatile than Dow Jones Industrial. It trades about 0.02 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.17 per unit of risk. If you would invest 25.00 in Strikepoint Gold on August 29, 2024 and sell it today you would lose (9.00) from holding Strikepoint Gold or give up 36.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.44% |
| Values | Daily Returns |
Strikepoint Gold vs. Dow Jones Industrial
Performance |
| Timeline |
Strikepoint Gold and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Strikepoint Gold
Pair trading matchups for Strikepoint Gold
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Strikepoint Gold and Dow Jones
The main advantage of trading using opposite Strikepoint Gold and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Strikepoint Gold 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.| Strikepoint Gold vs. Monarca Minerals | Strikepoint Gold vs. Outcrop Gold Corp | Strikepoint Gold vs. Grande Portage Resources | Strikepoint Gold vs. Klondike Silver Corp |
| Dow Jones vs. Kaltura | Dow Jones vs. Artisan Partners Asset | Dow Jones vs. US Global Investors | Dow Jones vs. Analog Devices |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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