Correlation Between Anhui Fuhuang and Dow Jones
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By analyzing existing cross correlation between Anhui Fuhuang Steel and Dow Jones Industrial, you can compare the effects of market volatilities on Anhui Fuhuang 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 Anhui Fuhuang with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Fuhuang and Dow Jones.
Diversification Opportunities for Anhui Fuhuang and Dow Jones
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Anhui and Dow is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Fuhuang Steel 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 Anhui Fuhuang 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 Anhui Fuhuang Steel 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 Anhui Fuhuang i.e., Anhui Fuhuang and Dow Jones go up and down completely randomly.
Pair Corralation between Anhui Fuhuang and Dow Jones
Assuming the 90 days trading horizon Anhui Fuhuang Steel is expected to generate 5.27 times more return on investment than Dow Jones. However, Anhui Fuhuang is 5.27 times more volatile than Dow Jones Industrial. It trades about 0.26 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.2 per unit of risk. If you would invest 364.00 in Anhui Fuhuang Steel on September 2, 2024 and sell it today you would earn a total of 275.00 from holding Anhui Fuhuang Steel or generate 75.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 92.19% |
| Values | Daily Returns |
Anhui Fuhuang Steel vs. Dow Jones Industrial
Performance |
| Timeline |
Anhui Fuhuang and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Anhui Fuhuang Steel
Pair trading matchups for Anhui Fuhuang
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Anhui Fuhuang and Dow Jones
The main advantage of trading using opposite Anhui Fuhuang and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Fuhuang 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.| Anhui Fuhuang vs. Shandong Huifa Foodstuff | Anhui Fuhuang vs. Xiwang Foodstuffs Co | Anhui Fuhuang vs. Oriental Times Media | Anhui Fuhuang vs. Dalian Zeus Entertainment |
| Dow Jones vs. Dream Finders Homes | Dow Jones vs. GEN Restaurant Group, | Dow Jones vs. National Beverage Corp | Dow Jones vs. BJs Restaurants |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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