Correlation Between GENERAL and Dow Jones
Specify exactly 2 symbols:
By analyzing existing cross correlation between GENERAL MTRS 625 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 0.5. Overlapping area represents the amount of risk that can be diversified away by holding GENERAL MTRS 625 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 MTRS 625 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 MTRS 625 is expected to under-perform the Dow Jones. In addition to that, GENERAL is 1.54 times more volatile than Dow Jones Industrial. It trades about -0.17 of its total potential returns per unit of risk. Dow Jones Industrial is currently generating about -0.21 per unit of volatility. If you would invest 4,471,358 in Dow Jones Industrial on November 28, 2024 and sell it today you would lose (128,046) from holding Dow Jones Industrial or give up 2.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GENERAL MTRS 625 vs. Dow Jones Industrial
Performance |
| Timeline |
GENERAL and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
GENERAL MTRS 625
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. New Oriental Education | GENERAL vs. WEBTOON Entertainment Common | GENERAL vs. Anheuser Busch Inbev | GENERAL vs. The Coca Cola |
| Dow Jones vs. Gladstone Investment | Dow Jones vs. BW Offshore Limited | Dow Jones vs. Fidus Investment Corp | Dow Jones vs. Aperture Health |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |