Correlation Between Hengli Industrial and Dow Jones
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By analyzing existing cross correlation between Hengli Industrial Development and Dow Jones Industrial, you can compare the effects of market volatilities on Hengli Industrial 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 Hengli Industrial with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hengli Industrial and Dow Jones.
Diversification Opportunities for Hengli Industrial and Dow Jones
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hengli and Dow is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Hengli Industrial Development 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 Hengli Industrial 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 Hengli Industrial Development 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 Hengli Industrial i.e., Hengli Industrial and Dow Jones go up and down completely randomly.
Pair Corralation between Hengli Industrial and Dow Jones
Assuming the 90 days trading horizon Hengli Industrial Development is expected to generate 4.34 times more return on investment than Dow Jones. However, Hengli Industrial is 4.34 times more volatile than Dow Jones Industrial. It trades about 0.28 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.26 per unit of risk. If you would invest 187.00 in Hengli Industrial Development on August 29, 2024 and sell it today you would earn a total of 53.00 from holding Hengli Industrial Development or generate 28.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hengli Industrial Development vs. Dow Jones Industrial
Performance |
| Timeline |
Hengli Industrial and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Hengli Industrial Development
Pair trading matchups for Hengli Industrial
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Hengli Industrial and Dow Jones
The main advantage of trading using opposite Hengli Industrial and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hengli Industrial 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.| Hengli Industrial vs. Huaxia Fund Management | Hengli Industrial vs. Cicc Fund Management | Hengli Industrial vs. AVIC Fund Management | Hengli Industrial vs. Hangzhou Pinming Software |
| Dow Jones vs. Kaltura | Dow Jones vs. Artisan Partners Asset | Dow Jones vs. US Global Investors | Dow Jones vs. Analog Devices |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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