Correlation Between Jiangxi Sunshine and Dow Jones
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By analyzing existing cross correlation between Jiangxi Sunshine Dairy and Dow Jones Industrial, you can compare the effects of market volatilities on Jiangxi Sunshine 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 Jiangxi Sunshine with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangxi Sunshine and Dow Jones.
Diversification Opportunities for Jiangxi Sunshine and Dow Jones
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiangxi and Dow is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Jiangxi Sunshine Dairy 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 Jiangxi Sunshine 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 Jiangxi Sunshine Dairy 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 Jiangxi Sunshine i.e., Jiangxi Sunshine and Dow Jones go up and down completely randomly.
Pair Corralation between Jiangxi Sunshine and Dow Jones
Assuming the 90 days trading horizon Jiangxi Sunshine Dairy is expected to generate 2.78 times more return on investment than Dow Jones. However, Jiangxi Sunshine is 2.78 times more volatile than Dow Jones Industrial. It trades about 0.27 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.06 per unit of risk. If you would invest 1,115 in Jiangxi Sunshine Dairy on September 13, 2024 and sell it today you would earn a total of 316.00 from holding Jiangxi Sunshine Dairy or generate 28.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 97.73% |
| Values | Daily Returns |
Jiangxi Sunshine Dairy vs. Dow Jones Industrial
Performance |
| Timeline |
Jiangxi Sunshine and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Jiangxi Sunshine Dairy
Pair trading matchups for Jiangxi Sunshine
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Jiangxi Sunshine and Dow Jones
The main advantage of trading using opposite Jiangxi Sunshine and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangxi Sunshine 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.| Jiangxi Sunshine vs. New China Life | Jiangxi Sunshine vs. Ming Yang Smart | Jiangxi Sunshine vs. 159681 | Jiangxi Sunshine vs. 159005 |
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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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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