Correlation Between Xian International and Dow Jones
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By analyzing existing cross correlation between Xian International Medical and Dow Jones Industrial, you can compare the effects of market volatilities on Xian International 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 Xian International with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xian International and Dow Jones.
Diversification Opportunities for Xian International and Dow Jones
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Xian and Dow is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Xian International Medical 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 Xian International 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 Xian International Medical 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 Xian International i.e., Xian International and Dow Jones go up and down completely randomly.
Pair Corralation between Xian International and Dow Jones
Assuming the 90 days trading horizon Xian International Medical is expected to generate 4.1 times more return on investment than Dow Jones. However, Xian International is 4.1 times more volatile than Dow Jones Industrial. It trades about 0.2 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.0 per unit of risk. If you would invest 484.00 in Xian International Medical on December 11, 2024 and sell it today you would earn a total of 125.00 from holding Xian International Medical or generate 25.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.0% |
| Values | Daily Returns |
Xian International Medical vs. Dow Jones Industrial
Performance |
| Timeline |
Xian International and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Xian International Medical
Pair trading matchups for Xian International
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Xian International and Dow Jones
The main advantage of trading using opposite Xian International and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xian International 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.| Xian International vs. Montage Technology Co | Xian International vs. iSoftStone Information Technology | Xian International vs. Iat Automobile Technology | Xian International vs. Huaibei Mining Holdings |
| Dow Jones vs. The Gap, | Dow Jones vs. Corporacion America Airports | Dow Jones vs. Mesa Air Group | Dow Jones vs. National Vision Holdings |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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