Correlation Between Xiwang Foodstuffs and Dow Jones
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By analyzing existing cross correlation between Xiwang Foodstuffs Co and Dow Jones Industrial, you can compare the effects of market volatilities on Xiwang Foodstuffs 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 Xiwang Foodstuffs with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiwang Foodstuffs and Dow Jones.
Diversification Opportunities for Xiwang Foodstuffs and Dow Jones
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Xiwang and Dow is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Xiwang Foodstuffs Co 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 Xiwang Foodstuffs 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 Xiwang Foodstuffs Co 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 Xiwang Foodstuffs i.e., Xiwang Foodstuffs and Dow Jones go up and down completely randomly.
Pair Corralation between Xiwang Foodstuffs and Dow Jones
Assuming the 90 days trading horizon Xiwang Foodstuffs is expected to generate 24.46 times less return on investment than Dow Jones. In addition to that, Xiwang Foodstuffs is 3.84 times more volatile than Dow Jones Industrial. It trades about 0.0 of its total potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.08 per unit of volatility. If you would invest 3,400,504 in Dow Jones Industrial on September 2, 2024 and sell it today you would earn a total of 1,090,561 from holding Dow Jones Industrial or generate 32.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 96.37% |
| Values | Daily Returns |
Xiwang Foodstuffs Co vs. Dow Jones Industrial
Performance |
| Timeline |
Xiwang Foodstuffs and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Xiwang Foodstuffs Co
Pair trading matchups for Xiwang Foodstuffs
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Xiwang Foodstuffs and Dow Jones
The main advantage of trading using opposite Xiwang Foodstuffs and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiwang Foodstuffs 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.| Xiwang Foodstuffs vs. Penyao Environmental Protection | Xiwang Foodstuffs vs. Anhui Fuhuang Steel | Xiwang Foodstuffs vs. Bengang Steel Plates | Xiwang Foodstuffs vs. Shenzhen MYS Environmental |
| Dow Jones vs. Dream Finders Homes | Dow Jones vs. GEN Restaurant Group, | Dow Jones vs. National Beverage Corp | Dow Jones vs. BJs Restaurants |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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