Correlation Between GENERAL and Dow Jones
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By analyzing existing cross correlation between GENERAL ELEC CAP 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 weak diversification
The 3 months correlation between GENERAL and Dow is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding GENERAL ELEC CAP 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 ELEC CAP 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 ELEC CAP is expected to under-perform the Dow Jones. But the bond apears to be less risky and, when comparing its historical volatility, GENERAL ELEC CAP is 1.01 times less risky than Dow Jones. The bond trades about -0.68 of its potential returns per unit of risk. The Dow Jones Industrial is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 4,238,757 in Dow Jones Industrial on August 28, 2024 and sell it today you would earn a total of 234,900 from holding Dow Jones Industrial or generate 5.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 28.57% |
| Values | Daily Returns |
GENERAL ELEC CAP vs. Dow Jones Industrial
Performance |
| Timeline |
GENERAL and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
GENERAL ELEC CAP
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. Pinterest | GENERAL vs. SmartStop Self Storage | GENERAL vs. Deluxe | GENERAL vs. National CineMedia |
| Dow Jones vs. Meiwu Technology Co | Dow Jones vs. 17 Education Technology | Dow Jones vs. 51Talk Online Education | Dow Jones vs. Afya |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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