Correlation Between Yunnan Yuntou and Dow Jones
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By analyzing existing cross correlation between Yunnan Yuntou Ecology and Dow Jones Industrial, you can compare the effects of market volatilities on Yunnan Yuntou 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 Yunnan Yuntou with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yunnan Yuntou and Dow Jones.
Diversification Opportunities for Yunnan Yuntou and Dow Jones
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Yunnan and Dow is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Yunnan Yuntou Ecology 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 Yunnan Yuntou 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 Yunnan Yuntou Ecology 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 Yunnan Yuntou i.e., Yunnan Yuntou and Dow Jones go up and down completely randomly.
Pair Corralation between Yunnan Yuntou and Dow Jones
Assuming the 90 days trading horizon Yunnan Yuntou is expected to generate 1.46 times less return on investment than Dow Jones. In addition to that, Yunnan Yuntou is 2.89 times more volatile than Dow Jones Industrial. It trades about 0.04 of its total potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.15 per unit of volatility. If you would invest 3,868,632 in Dow Jones Industrial on August 29, 2024 and sell it today you would earn a total of 603,574 from holding Dow Jones Industrial or generate 15.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 96.03% |
| Values | Daily Returns |
Yunnan Yuntou Ecology vs. Dow Jones Industrial
Performance |
| Timeline |
Yunnan Yuntou and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Yunnan Yuntou Ecology
Pair trading matchups for Yunnan Yuntou
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Yunnan Yuntou and Dow Jones
The main advantage of trading using opposite Yunnan Yuntou and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yunnan Yuntou 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.| Yunnan Yuntou vs. Huafa Industrial Co | Yunnan Yuntou vs. Chengtun Mining Group | Yunnan Yuntou vs. Gansu Yasheng Industrial | Yunnan Yuntou vs. Rising Nonferrous Metals |
| 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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