Correlation Between 36158FAD2 and Dow Jones
Specify exactly 2 symbols:
By analyzing existing cross correlation between GE GLOBAL INS and Dow Jones Industrial, you can compare the effects of market volatilities on 36158FAD2 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 36158FAD2 with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of 36158FAD2 and Dow Jones.
Diversification Opportunities for 36158FAD2 and Dow Jones
Weak diversification
The 3 months correlation between 36158FAD2 and Dow is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding GE GLOBAL INS 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 36158FAD2 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 GE GLOBAL INS 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 36158FAD2 i.e., 36158FAD2 and Dow Jones go up and down completely randomly.
Pair Corralation between 36158FAD2 and Dow Jones
Assuming the 90 days trading horizon 36158FAD2 is expected to generate 6.79 times less return on investment than Dow Jones. In addition to that, 36158FAD2 is 2.35 times more volatile than Dow Jones Industrial. It trades about 0.01 of its total potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.13 per unit of volatility. If you would invest 3,611,738 in Dow Jones Industrial on September 2, 2024 and sell it today you would earn a total of 879,327 from holding Dow Jones Industrial or generate 24.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 35.08% |
| Values | Daily Returns |
GE GLOBAL INS vs. Dow Jones Industrial
Performance |
| Timeline |
36158FAD2 and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
GE GLOBAL INS
Pair trading matchups for 36158FAD2
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with 36158FAD2 and Dow Jones
The main advantage of trading using opposite 36158FAD2 and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 36158FAD2 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.| 36158FAD2 vs. AEP TEX INC | 36158FAD2 vs. US BANK NATIONAL | 36158FAD2 vs. American Express | 36158FAD2 vs. Chevron Corp |
| Dow Jones vs. Dream Finders Homes | Dow Jones vs. GEN Restaurant Group, | Dow Jones vs. National Beverage Corp | Dow Jones vs. BJs Restaurants |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |