Correlation Between Fujian Newland and Dow Jones
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By analyzing existing cross correlation between Fujian Newland Computer and Dow Jones Industrial, you can compare the effects of market volatilities on Fujian Newland 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 Fujian Newland with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Newland and Dow Jones.
Diversification Opportunities for Fujian Newland and Dow Jones
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Fujian and Dow is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Newland Computer 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 Fujian Newland 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 Fujian Newland Computer 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 Fujian Newland i.e., Fujian Newland and Dow Jones go up and down completely randomly.
Pair Corralation between Fujian Newland and Dow Jones
Assuming the 90 days trading horizon Fujian Newland Computer is expected to generate 3.71 times more return on investment than Dow Jones. However, Fujian Newland is 3.71 times more volatile than Dow Jones Industrial. It trades about 0.12 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.27 per unit of risk. If you would invest 1,788 in Fujian Newland Computer on August 28, 2024 and sell it today you would earn a total of 150.00 from holding Fujian Newland Computer or generate 8.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fujian Newland Computer vs. Dow Jones Industrial
Performance |
| Timeline |
Fujian Newland and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Fujian Newland Computer
Pair trading matchups for Fujian Newland
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Fujian Newland and Dow Jones
The main advantage of trading using opposite Fujian Newland and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Newland 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.| Fujian Newland vs. Agricultural Bank of | Fujian Newland vs. Industrial and Commercial | Fujian Newland vs. Bank of China | Fujian Newland vs. PetroChina Co Ltd |
| Dow Jones vs. CECO Environmental Corp | Dow Jones vs. Western Acquisition Ventures | Dow Jones vs. Tyson Foods | Dow Jones vs. Inflection Point Acquisition |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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