Correlation Between Xiamen Insight and Dow Jones
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By analyzing existing cross correlation between Xiamen Insight Investment and Dow Jones Industrial, you can compare the effects of market volatilities on Xiamen Insight 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 Xiamen Insight with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiamen Insight and Dow Jones.
Diversification Opportunities for Xiamen Insight and Dow Jones
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Xiamen and Dow is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Xiamen Insight Investment 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 Xiamen Insight 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 Xiamen Insight Investment 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 Xiamen Insight i.e., Xiamen Insight and Dow Jones go up and down completely randomly.
Pair Corralation between Xiamen Insight and Dow Jones
Assuming the 90 days trading horizon Xiamen Insight Investment is expected to under-perform the Dow Jones. In addition to that, Xiamen Insight is 3.43 times more volatile than Dow Jones Industrial. It trades about -0.07 of its total potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.1 per unit of volatility. If you would invest 4,238,757 in Dow Jones Industrial on October 26, 2024 and sell it today you would earn a total of 217,750 from holding Dow Jones Industrial or generate 5.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Xiamen Insight Investment vs. Dow Jones Industrial
Performance |
| Timeline |
Xiamen Insight and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Xiamen Insight Investment
Pair trading matchups for Xiamen Insight
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Xiamen Insight and Dow Jones
The main advantage of trading using opposite Xiamen Insight and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiamen Insight 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.| Xiamen Insight vs. Ming Yang Smart | Xiamen Insight vs. 159681 | Xiamen Insight vs. 159005 | Xiamen Insight vs. Loctek Ergonomic Technology |
| Dow Jones vs. Asure Software | Dow Jones vs. Amkor Technology | Dow Jones vs. Radcom | Dow Jones vs. Senmiao Technology |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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