Correlation Between Anhui Guofeng and Dow Jones
Specify exactly 2 symbols:
By analyzing existing cross correlation between Anhui Guofeng Plastic and Dow Jones Industrial, you can compare the effects of market volatilities on Anhui Guofeng 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 Guofeng with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Guofeng and Dow Jones.
Diversification Opportunities for Anhui Guofeng and Dow Jones
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Anhui and Dow is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Guofeng Plastic 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 Guofeng 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 Guofeng Plastic 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 Guofeng i.e., Anhui Guofeng and Dow Jones go up and down completely randomly.
Pair Corralation between Anhui Guofeng and Dow Jones
Assuming the 90 days trading horizon Anhui Guofeng is expected to generate 2.95 times less return on investment than Dow Jones. In addition to that, Anhui Guofeng is 4.74 times more volatile than Dow Jones Industrial. It trades about 0.01 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 3,424,593 in Dow Jones Industrial on November 4, 2024 and sell it today you would earn a total of 1,029,873 from holding Dow Jones Industrial or generate 30.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 96.37% |
| Values | Daily Returns |
Anhui Guofeng Plastic vs. Dow Jones Industrial
Performance |
| Timeline |
Anhui Guofeng and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Anhui Guofeng Plastic
Pair trading matchups for Anhui Guofeng
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Anhui Guofeng and Dow Jones
The main advantage of trading using opposite Anhui Guofeng and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Guofeng 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 Guofeng vs. Zijin Mining Group | Anhui Guofeng vs. Wanhua Chemical Group | Anhui Guofeng vs. Baoshan Iron Steel | Anhui Guofeng vs. Shandong Gold Mining |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |