Correlation Between Guangzhou Tinci and Dow Jones
Specify exactly 2 symbols:
By analyzing existing cross correlation between Guangzhou Tinci Materials and Dow Jones Industrial, you can compare the effects of market volatilities on Guangzhou Tinci 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 Guangzhou Tinci with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Tinci and Dow Jones.
Diversification Opportunities for Guangzhou Tinci and Dow Jones
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guangzhou and Dow is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Tinci Materials 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 Guangzhou Tinci 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 Guangzhou Tinci Materials 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 Guangzhou Tinci i.e., Guangzhou Tinci and Dow Jones go up and down completely randomly.
Pair Corralation between Guangzhou Tinci and Dow Jones
Assuming the 90 days trading horizon Guangzhou Tinci Materials is expected to generate 4.98 times more return on investment than Dow Jones. However, Guangzhou Tinci is 4.98 times more volatile than Dow Jones Industrial. It trades about 0.31 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.29 per unit of risk. If you would invest 1,797 in Guangzhou Tinci Materials on August 31, 2024 and sell it today you would earn a total of 638.00 from holding Guangzhou Tinci Materials or generate 35.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Tinci Materials vs. Dow Jones Industrial
Performance |
| Timeline |
Guangzhou Tinci and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Guangzhou Tinci Materials
Pair trading matchups for Guangzhou Tinci
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Guangzhou Tinci and Dow Jones
The main advantage of trading using opposite Guangzhou Tinci and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Tinci 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.| Guangzhou Tinci vs. Zijin Mining Group | Guangzhou Tinci vs. Baoshan Iron Steel | Guangzhou Tinci vs. Rongsheng Petrochemical Co |
| Dow Jones vs. Aerofoam Metals | Dow Jones vs. ACG Metals Limited | Dow Jones vs. China Clean Energy | Dow Jones vs. Fast Retailing Co |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |