Correlation Between Xinjiang Beixin and Dow Jones
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By analyzing existing cross correlation between Xinjiang Beixin RoadBridge and Dow Jones Industrial, you can compare the effects of market volatilities on Xinjiang Beixin 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 Xinjiang Beixin with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinjiang Beixin and Dow Jones.
Diversification Opportunities for Xinjiang Beixin and Dow Jones
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Xinjiang and Dow is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Xinjiang Beixin RoadBridge 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 Xinjiang Beixin 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 Xinjiang Beixin RoadBridge 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 Xinjiang Beixin i.e., Xinjiang Beixin and Dow Jones go up and down completely randomly.
Pair Corralation between Xinjiang Beixin and Dow Jones
Assuming the 90 days trading horizon Xinjiang Beixin RoadBridge is expected to generate 3.76 times more return on investment than Dow Jones. However, Xinjiang Beixin is 3.76 times more volatile than Dow Jones Industrial. It trades about 0.14 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.37 per unit of risk. If you would invest 378.00 in Xinjiang Beixin RoadBridge on September 1, 2024 and sell it today you would earn a total of 37.00 from holding Xinjiang Beixin RoadBridge or generate 9.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Xinjiang Beixin RoadBridge vs. Dow Jones Industrial
Performance |
| Timeline |
Xinjiang Beixin and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Xinjiang Beixin RoadBridge
Pair trading matchups for Xinjiang Beixin
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Xinjiang Beixin and Dow Jones
The main advantage of trading using opposite Xinjiang Beixin and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinjiang Beixin 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.| Xinjiang Beixin vs. Humanwell Healthcare Group | Xinjiang Beixin vs. De Rucci Healthy | Xinjiang Beixin vs. Xinke Material | Xinjiang Beixin vs. Kangxin New Materials |
| Dow Jones vs. Catalyst Pharmaceuticals | Dow Jones vs. Sphere Entertainment Co | Dow Jones vs. National CineMedia | Dow Jones vs. Mink Therapeutics |
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 CEOs Directory module to screen CEOs from public companies around the world.
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