Correlation Between Inner Mongolia and Dow Jones
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By analyzing existing cross correlation between Inner Mongolia Dazhong and Dow Jones Industrial, you can compare the effects of market volatilities on Inner Mongolia 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 Inner Mongolia with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inner Mongolia and Dow Jones.
Diversification Opportunities for Inner Mongolia and Dow Jones
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Inner and Dow is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Inner Mongolia Dazhong 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 Inner Mongolia 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 Inner Mongolia Dazhong 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 Inner Mongolia i.e., Inner Mongolia and Dow Jones go up and down completely randomly.
Pair Corralation between Inner Mongolia and Dow Jones
Assuming the 90 days trading horizon Inner Mongolia Dazhong is expected to generate 6.46 times more return on investment than Dow Jones. However, Inner Mongolia is 6.46 times more volatile than Dow Jones Industrial. It trades about 0.1 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about -0.01 per unit of risk. If you would invest 919.00 in Inner Mongolia Dazhong on September 12, 2024 and sell it today you would earn a total of 64.00 from holding Inner Mongolia Dazhong or generate 6.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 91.3% |
| Values | Daily Returns |
Inner Mongolia Dazhong vs. Dow Jones Industrial
Performance |
| Timeline |
Inner Mongolia and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Inner Mongolia Dazhong
Pair trading matchups for Inner Mongolia
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Inner Mongolia and Dow Jones
The main advantage of trading using opposite Inner Mongolia and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inner Mongolia 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.| Inner Mongolia vs. Zhengzhou Coal Mining | Inner Mongolia vs. Guangdong Qunxing Toys | Inner Mongolia vs. Xinjiang Baodi Mining | Inner Mongolia vs. Everdisplay Optronics Shanghai |
| Dow Jones vs. Aeye Inc | Dow Jones vs. Gentex | Dow Jones vs. Marine Products | Dow Jones vs. CarsalesCom Ltd ADR |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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