Correlation Between Xiamen Jihong and Dow Jones
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By analyzing existing cross correlation between Xiamen Jihong Package and Dow Jones Industrial, you can compare the effects of market volatilities on Xiamen Jihong 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 Xiamen Jihong with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiamen Jihong and Dow Jones.
Diversification Opportunities for Xiamen Jihong and Dow Jones
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Xiamen and Dow is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Xiamen Jihong Package 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 Xiamen Jihong 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 Xiamen Jihong Package 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 Xiamen Jihong i.e., Xiamen Jihong and Dow Jones go up and down completely randomly.
Pair Corralation between Xiamen Jihong and Dow Jones
Assuming the 90 days trading horizon Xiamen Jihong Package is expected to generate 3.49 times more return on investment than Dow Jones. However, Xiamen Jihong is 3.49 times more volatile than Dow Jones Industrial. It trades about 0.29 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.21 per unit of risk. If you would invest 1,229 in Xiamen Jihong Package on August 25, 2024 and sell it today you would earn a total of 292.00 from holding Xiamen Jihong Package or generate 23.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Xiamen Jihong Package vs. Dow Jones Industrial
Performance |
| Timeline |
Xiamen Jihong and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Xiamen Jihong Package
Pair trading matchups for Xiamen Jihong
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Xiamen Jihong and Dow Jones
The main advantage of trading using opposite Xiamen Jihong and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiamen Jihong 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.| Xiamen Jihong vs. Focus Media Information | Xiamen Jihong vs. ButOne Information Corp | Xiamen Jihong vs. Dawning Information Industry | Xiamen Jihong vs. Datang HuaYin Electric |
| Dow Jones vs. Vistra Energy Corp | Dow Jones vs. Fluence Energy | Dow Jones vs. Old Republic International | Dow Jones vs. Empresa Distribuidora y |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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