Correlation Between Shenzhen Silver and Dow Jones
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By analyzing existing cross correlation between Shenzhen Silver Basis and Dow Jones Industrial, you can compare the effects of market volatilities on Shenzhen Silver 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 Shenzhen Silver with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Silver and Dow Jones.
Diversification Opportunities for Shenzhen Silver and Dow Jones
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shenzhen and Dow is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Silver Basis 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 Shenzhen Silver 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 Shenzhen Silver Basis 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 Shenzhen Silver i.e., Shenzhen Silver and Dow Jones go up and down completely randomly.
Pair Corralation between Shenzhen Silver and Dow Jones
Assuming the 90 days trading horizon Shenzhen Silver Basis is expected to under-perform the Dow Jones. In addition to that, Shenzhen Silver is 5.62 times more volatile than Dow Jones Industrial. It trades about -0.17 of its total potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.0 per unit of volatility. If you would invest 4,391,098 in Dow Jones Industrial on September 13, 2024 and sell it today you would earn a total of 314.00 from holding Dow Jones Industrial or generate 0.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Shenzhen Silver Basis vs. Dow Jones Industrial
Performance |
| Timeline |
Shenzhen Silver and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Shenzhen Silver Basis
Pair trading matchups for Shenzhen Silver
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Shenzhen Silver and Dow Jones
The main advantage of trading using opposite Shenzhen Silver and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Silver 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.| Shenzhen Silver vs. Jointo Energy Investment | Shenzhen Silver vs. Harbin Air Conditioning | Shenzhen Silver vs. Harbin Hatou Investment | Shenzhen Silver vs. Jiangsu Yueda Investment |
| Dow Jones vs. Hurco Companies | Dow Jones vs. Tyson Foods | Dow Jones vs. MYR Group | Dow Jones vs. Cannae Holdings |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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