Correlation Between Taiji Computer and Dow Jones
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By analyzing existing cross correlation between Taiji Computer Corp and Dow Jones Industrial, you can compare the effects of market volatilities on Taiji Computer 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 Taiji Computer with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Taiji Computer and Dow Jones.
Diversification Opportunities for Taiji Computer and Dow Jones
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Taiji and Dow is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Taiji Computer Corp 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 Taiji Computer 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 Taiji Computer Corp 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 Taiji Computer i.e., Taiji Computer and Dow Jones go up and down completely randomly.
Pair Corralation between Taiji Computer and Dow Jones
Assuming the 90 days trading horizon Taiji Computer Corp is expected to under-perform the Dow Jones. In addition to that, Taiji Computer is 2.95 times more volatile than Dow Jones Industrial. It trades about -0.06 of its total potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.22 per unit of volatility. If you would invest 4,299,221 in Dow Jones Industrial on October 28, 2024 and sell it today you would earn a total of 143,204 from holding Dow Jones Industrial or generate 3.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 90.48% |
| Values | Daily Returns |
Taiji Computer Corp vs. Dow Jones Industrial
Performance |
| Timeline |
Taiji Computer and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Taiji Computer Corp
Pair trading matchups for Taiji Computer
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Taiji Computer and Dow Jones
The main advantage of trading using opposite Taiji Computer and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Taiji Computer 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.| Taiji Computer vs. North Copper Shanxi | Taiji Computer vs. Jiangsu Financial Leasing | Taiji Computer vs. Sunny Loan Top | Taiji Computer vs. Citic Guoan Wine |
| Dow Jones vs. Lion One Metals | Dow Jones vs. PennantPark Floating Rate | Dow Jones vs. TFI International | Dow Jones vs. United Guardian |
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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