Correlation Between ZheJiang BangJie and Dow Jones
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By analyzing existing cross correlation between ZheJiang BangJie Digital and Dow Jones Industrial, you can compare the effects of market volatilities on ZheJiang BangJie 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 ZheJiang BangJie with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of ZheJiang BangJie and Dow Jones.
Diversification Opportunities for ZheJiang BangJie and Dow Jones
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ZheJiang and Dow is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding ZheJiang BangJie Digital 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 ZheJiang BangJie 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 ZheJiang BangJie Digital 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 ZheJiang BangJie i.e., ZheJiang BangJie and Dow Jones go up and down completely randomly.
Pair Corralation between ZheJiang BangJie and Dow Jones
Assuming the 90 days trading horizon ZheJiang BangJie Digital is expected to generate 4.97 times more return on investment than Dow Jones. However, ZheJiang BangJie is 4.97 times more volatile than Dow Jones Industrial. It trades about 0.02 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about -0.01 per unit of risk. If you would invest 438.00 in ZheJiang BangJie Digital on September 12, 2024 and sell it today you would earn a total of 1.00 from holding ZheJiang BangJie Digital or generate 0.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 91.3% |
| Values | Daily Returns |
ZheJiang BangJie Digital vs. Dow Jones Industrial
Performance |
| Timeline |
ZheJiang BangJie and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
ZheJiang BangJie Digital
Pair trading matchups for ZheJiang BangJie
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with ZheJiang BangJie and Dow Jones
The main advantage of trading using opposite ZheJiang BangJie and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ZheJiang BangJie 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.| ZheJiang BangJie vs. Shenwu Energy Saving | ZheJiang BangJie vs. Peoples Insurance of | ZheJiang BangJie vs. Guosheng Financial Holding | ZheJiang BangJie vs. Youyou Foods Co |
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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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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