Correlation Between Shenzhen Zhenye and Dow Jones
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By analyzing existing cross correlation between Shenzhen Zhenye Group and Dow Jones Industrial, you can compare the effects of market volatilities on Shenzhen Zhenye 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 Shenzhen Zhenye with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Zhenye and Dow Jones.
Diversification Opportunities for Shenzhen Zhenye and Dow Jones
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenzhen and Dow is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Zhenye Group 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 Shenzhen Zhenye 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 Shenzhen Zhenye Group 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 Shenzhen Zhenye i.e., Shenzhen Zhenye and Dow Jones go up and down completely randomly.
Pair Corralation between Shenzhen Zhenye and Dow Jones
Assuming the 90 days trading horizon Shenzhen Zhenye Group is expected to generate 4.59 times more return on investment than Dow Jones. However, Shenzhen Zhenye is 4.59 times more volatile than Dow Jones Industrial. It trades about 0.05 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.09 per unit of risk. If you would invest 528.00 in Shenzhen Zhenye Group on August 27, 2024 and sell it today you would earn a total of 286.00 from holding Shenzhen Zhenye Group or generate 54.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 96.48% |
| Values | Daily Returns |
Shenzhen Zhenye Group vs. Dow Jones Industrial
Performance |
| Timeline |
Shenzhen Zhenye and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Shenzhen Zhenye Group
Pair trading matchups for Shenzhen Zhenye
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Shenzhen Zhenye and Dow Jones
The main advantage of trading using opposite Shenzhen Zhenye and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Zhenye 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.| Shenzhen Zhenye vs. Jiangsu Jinling Sports | Shenzhen Zhenye vs. Zhejiang Publishing Media | Shenzhen Zhenye vs. Shanghai Action Education | Shenzhen Zhenye vs. Shanghai Jinfeng Wine |
| 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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