Correlation Between Anhui Gujing and Dow Jones
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By analyzing existing cross correlation between Anhui Gujing Distillery and Dow Jones Industrial, you can compare the effects of market volatilities on Anhui Gujing 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 Anhui Gujing with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Gujing and Dow Jones.
Diversification Opportunities for Anhui Gujing and Dow Jones
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Anhui and Dow is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Gujing Distillery 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 Anhui Gujing 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 Anhui Gujing Distillery 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 Anhui Gujing i.e., Anhui Gujing and Dow Jones go up and down completely randomly.
Pair Corralation between Anhui Gujing and Dow Jones
Assuming the 90 days trading horizon Anhui Gujing Distillery is expected to under-perform the Dow Jones. In addition to that, Anhui Gujing is 3.01 times more volatile than Dow Jones Industrial. It trades about -0.06 of its total potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.27 per unit of volatility. If you would invest 4,238,757 in Dow Jones Industrial on August 29, 2024 and sell it today you would earn a total of 247,274 from holding Dow Jones Industrial or generate 5.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Gujing Distillery vs. Dow Jones Industrial
Performance |
| Timeline |
Anhui Gujing and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Anhui Gujing Distillery
Pair trading matchups for Anhui Gujing
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Anhui Gujing and Dow Jones
The main advantage of trading using opposite Anhui Gujing and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Gujing 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.| Anhui Gujing vs. BYD Co Ltd | Anhui Gujing vs. China Mobile Limited | Anhui Gujing vs. Agricultural Bank of | Anhui Gujing vs. Industrial and Commercial |
| Dow Jones vs. CECO Environmental Corp | Dow Jones vs. Western Acquisition Ventures | Dow Jones vs. Tyson Foods | Dow Jones vs. Inflection Point Acquisition |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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