Correlation Between Ningxia Younglight and Dow Jones
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By analyzing existing cross correlation between Ningxia Younglight Chemicals and Dow Jones Industrial, you can compare the effects of market volatilities on Ningxia Younglight 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 Ningxia Younglight with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningxia Younglight and Dow Jones.
Diversification Opportunities for Ningxia Younglight and Dow Jones
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Ningxia and Dow is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Ningxia Younglight Chemicals 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 Ningxia Younglight 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 Ningxia Younglight Chemicals 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 Ningxia Younglight i.e., Ningxia Younglight and Dow Jones go up and down completely randomly.
Pair Corralation between Ningxia Younglight and Dow Jones
Assuming the 90 days trading horizon Ningxia Younglight Chemicals is expected to under-perform the Dow Jones. In addition to that, Ningxia Younglight is 3.92 times more volatile than Dow Jones Industrial. It trades about -0.3 of its total potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.19 per unit of volatility. If you would invest 4,329,703 in Dow Jones Industrial on October 25, 2024 and sell it today you would earn a total of 126,804 from holding Dow Jones Industrial or generate 2.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 90.91% |
| Values | Daily Returns |
Ningxia Younglight Chemicals vs. Dow Jones Industrial
Performance |
| Timeline |
Ningxia Younglight and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Ningxia Younglight Chemicals
Pair trading matchups for Ningxia Younglight
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Ningxia Younglight and Dow Jones
The main advantage of trading using opposite Ningxia Younglight and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningxia Younglight 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.| Ningxia Younglight vs. Zijin Mining Group | Ningxia Younglight vs. Wanhua Chemical Group | Ningxia Younglight vs. Baoshan Iron Steel | Ningxia Younglight vs. Rongsheng Petrochemical Co |
| Dow Jones vs. Xiabuxiabu Catering Management | Dow Jones vs. Neogen | Dow Jones vs. Orion Office Reit | Dow Jones vs. Bassett Furniture Industries |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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