Correlation Between 5I5j Holding and Dow Jones
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By analyzing existing cross correlation between 5I5j Holding Group and Dow Jones Industrial, you can compare the effects of market volatilities on 5I5j Holding 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 5I5j Holding with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of 5I5j Holding and Dow Jones.
Diversification Opportunities for 5I5j Holding and Dow Jones
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between 5I5j and Dow is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding 5I5j Holding 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 5I5j Holding 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 5I5j Holding 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 5I5j Holding i.e., 5I5j Holding and Dow Jones go up and down completely randomly.
Pair Corralation between 5I5j Holding and Dow Jones
Assuming the 90 days trading horizon 5I5j Holding Group is expected to generate 5.51 times more return on investment than Dow Jones. However, 5I5j Holding is 5.51 times more volatile than Dow Jones Industrial. It trades about 0.09 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.1 per unit of risk. If you would invest 222.00 in 5I5j Holding Group on September 26, 2024 and sell it today you would earn a total of 96.00 from holding 5I5j Holding Group or generate 43.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 96.83% |
| Values | Daily Returns |
5I5j Holding Group vs. Dow Jones Industrial
Performance |
| Timeline |
5I5j Holding and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
5I5j Holding Group
Pair trading matchups for 5I5j Holding
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with 5I5j Holding and Dow Jones
The main advantage of trading using opposite 5I5j Holding and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 5I5j Holding 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.| 5I5j Holding vs. Nanjing Putian Telecommunications | 5I5j Holding vs. Guangdong Marubi Biotechnology | 5I5j Holding vs. Iat Automobile Technology | 5I5j Holding vs. Songz Automobile Air |
| Dow Jones vs. 51Talk Online Education | Dow Jones vs. World Houseware Limited | Dow Jones vs. Beauty Health Co | Dow Jones vs. Acme United |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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