Correlation Between HanS Laser and Dow Jones
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By analyzing existing cross correlation between HanS Laser Tech and Dow Jones Industrial, you can compare the effects of market volatilities on HanS Laser 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 HanS Laser with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of HanS Laser and Dow Jones.
Diversification Opportunities for HanS Laser and Dow Jones
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between HanS and Dow is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding HanS Laser Tech 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 HanS Laser 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 HanS Laser Tech 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 HanS Laser i.e., HanS Laser and Dow Jones go up and down completely randomly.
Pair Corralation between HanS Laser and Dow Jones
Assuming the 90 days trading horizon HanS Laser is expected to generate 1.37 times less return on investment than Dow Jones. In addition to that, HanS Laser is 3.81 times more volatile than Dow Jones Industrial. It trades about 0.05 of its total potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.27 per unit of volatility. If you would invest 4,223,305 in Dow Jones Industrial on August 30, 2024 and sell it today you would earn a total of 248,901 from holding Dow Jones Industrial or generate 5.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
HanS Laser Tech vs. Dow Jones Industrial
Performance |
| Timeline |
HanS Laser and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
HanS Laser Tech
Pair trading matchups for HanS Laser
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with HanS Laser and Dow Jones
The main advantage of trading using opposite HanS Laser and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HanS Laser 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.| HanS Laser vs. PetroChina Co Ltd | HanS Laser vs. China State Construction | HanS Laser vs. China Mobile Limited | HanS Laser vs. Industrial and Commercial |
| Dow Jones vs. Kaltura | Dow Jones vs. Artisan Partners Asset | Dow Jones vs. US Global Investors | Dow Jones vs. Analog Devices |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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