Correlation Between GENERAL and Dow Jones
Specify exactly 2 symbols:
By analyzing existing cross correlation between GENERAL DYNAMICS P and Dow Jones Industrial, you can compare the effects of market volatilities on GENERAL 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 GENERAL with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of GENERAL and Dow Jones.
Diversification Opportunities for GENERAL and Dow Jones
Very good diversification
The 3 months correlation between GENERAL and Dow is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding GENERAL DYNAMICS P 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 GENERAL 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 GENERAL DYNAMICS P 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 GENERAL i.e., GENERAL and Dow Jones go up and down completely randomly.
Pair Corralation between GENERAL and Dow Jones
Assuming the 90 days trading horizon GENERAL is expected to generate 10.01 times less return on investment than Dow Jones. But when comparing it to its historical volatility, GENERAL DYNAMICS P is 3.26 times less risky than Dow Jones. It trades about 0.03 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 3,897,241 in Dow Jones Industrial on August 25, 2024 and sell it today you would earn a total of 532,410 from holding Dow Jones Industrial or generate 13.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 85.79% |
| Values | Daily Returns |
GENERAL DYNAMICS P vs. Dow Jones Industrial
Performance |
| Timeline |
GENERAL and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
GENERAL DYNAMICS P
Pair trading matchups for GENERAL
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with GENERAL and Dow Jones
The main advantage of trading using opposite GENERAL and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GENERAL 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.| GENERAL vs. Park Ohio Holdings | GENERAL vs. Analog Devices | GENERAL vs. Newpark Resources | GENERAL vs. Primoris Services |
| Dow Jones vs. Vistra Energy Corp | Dow Jones vs. Fluence Energy | Dow Jones vs. Old Republic International | Dow Jones vs. Empresa Distribuidora y |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |