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
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Xiamen and Dow is 0.47. 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 is expected to generate 2.62 times less return on investment than Dow Jones. In addition to that, Xiamen Jihong is 3.66 times more volatile than Dow Jones Industrial. It trades about 0.03 of its total potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.33 per unit of volatility. If you would invest 4,239,227 in Dow Jones Industrial on November 3, 2024 and sell it today you would earn a total of 215,239 from holding Dow Jones Industrial or generate 5.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 90.48% |
| 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. Linkage Software Co | Xiamen Jihong vs. China Life Insurance | Xiamen Jihong vs. China Sports Industry | Xiamen Jihong vs. Inspur Software Co |
| Dow Jones vs. Rambler Metals and | Dow Jones vs. Nicola Mining | Dow Jones vs. Old Dominion Freight | Dow Jones vs. United Guardian |
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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