Correlation Between North Copper and Dow Jones
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By analyzing existing cross correlation between North Copper Shanxi and Dow Jones Industrial, you can compare the effects of market volatilities on North Copper 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 North Copper with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of North Copper and Dow Jones.
Diversification Opportunities for North Copper and Dow Jones
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between North and Dow is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding North Copper Shanxi 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 North Copper 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 North Copper Shanxi 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 North Copper i.e., North Copper and Dow Jones go up and down completely randomly.
Pair Corralation between North Copper and Dow Jones
Assuming the 90 days trading horizon North Copper Shanxi is expected to generate 4.08 times more return on investment than Dow Jones. However, North Copper is 4.08 times more volatile than Dow Jones Industrial. It trades about 0.18 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about -0.18 per unit of risk. If you would invest 860.00 in North Copper Shanxi on October 17, 2024 and sell it today you would earn a total of 114.00 from holding North Copper Shanxi or generate 13.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
North Copper Shanxi vs. Dow Jones Industrial
Performance |
| Timeline |
North Copper and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
North Copper Shanxi
Pair trading matchups for North Copper
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with North Copper and Dow Jones
The main advantage of trading using opposite North Copper and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if North Copper 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.| North Copper vs. CSSC Offshore Marine | North Copper vs. Caihong Display Devices | North Copper vs. Aba Chemicals Corp | North Copper vs. Hubei Xingfa Chemicals |
| Dow Jones vs. Gfl Environmental Holdings | Dow Jones vs. Lizhan Environmental | Dow Jones vs. Grupo Simec SAB | Dow Jones vs. Constellation Brands Class |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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