Correlation Between Shaanxi Energy and Dow Jones
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By analyzing existing cross correlation between Shaanxi Energy Investment and Dow Jones Industrial, you can compare the effects of market volatilities on Shaanxi Energy 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 Shaanxi Energy with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shaanxi Energy and Dow Jones.
Diversification Opportunities for Shaanxi Energy and Dow Jones
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Shaanxi and Dow is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Shaanxi Energy Investment 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 Shaanxi Energy 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 Shaanxi Energy Investment 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 Shaanxi Energy i.e., Shaanxi Energy and Dow Jones go up and down completely randomly.
Pair Corralation between Shaanxi Energy and Dow Jones
Assuming the 90 days trading horizon Shaanxi Energy Investment is expected to under-perform the Dow Jones. In addition to that, Shaanxi Energy is 2.72 times more volatile than Dow Jones Industrial. It trades about -0.03 of its total potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.14 per unit of volatility. If you would invest 4,220,822 in Dow Jones Industrial on August 25, 2024 and sell it today you would earn a total of 208,829 from holding Dow Jones Industrial or generate 4.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 88.89% |
| Values | Daily Returns |
Shaanxi Energy Investment vs. Dow Jones Industrial
Performance |
| Timeline |
Shaanxi Energy and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Shaanxi Energy Investment
Pair trading matchups for Shaanxi Energy
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Shaanxi Energy and Dow Jones
The main advantage of trading using opposite Shaanxi Energy and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shaanxi Energy 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.| Shaanxi Energy vs. Zhejiang Kingland Pipeline | Shaanxi Energy vs. Xiangyang Automobile Bearing | Shaanxi Energy vs. Suzhou Novoprotein Scientific | Shaanxi Energy vs. COL Digital Publishing |
| Dow Jones vs. Vistra Energy Corp | Dow Jones vs. Fluence Energy | Dow Jones vs. Old Republic International | Dow Jones vs. Empresa Distribuidora y |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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