Correlation Between Zhejiang Huatong and Dow Jones
Specify exactly 2 symbols:
By analyzing existing cross correlation between Zhejiang Huatong Meat and Dow Jones Industrial, you can compare the effects of market volatilities on Zhejiang Huatong 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 Zhejiang Huatong with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Huatong and Dow Jones.
Diversification Opportunities for Zhejiang Huatong and Dow Jones
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zhejiang and Dow is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Huatong Meat 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 Zhejiang Huatong 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 Zhejiang Huatong Meat 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 Zhejiang Huatong i.e., Zhejiang Huatong and Dow Jones go up and down completely randomly.
Pair Corralation between Zhejiang Huatong and Dow Jones
Assuming the 90 days trading horizon Zhejiang Huatong Meat is expected to generate 4.3 times more return on investment than Dow Jones. However, Zhejiang Huatong is 4.3 times more volatile than Dow Jones Industrial. It trades about 0.11 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about -0.23 per unit of risk. If you would invest 1,241 in Zhejiang Huatong Meat on September 27, 2024 and sell it today you would earn a total of 89.00 from holding Zhejiang Huatong Meat or generate 7.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Zhejiang Huatong Meat vs. Dow Jones Industrial
Performance |
| Timeline |
Zhejiang Huatong and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Zhejiang Huatong Meat
Pair trading matchups for Zhejiang Huatong
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Zhejiang Huatong and Dow Jones
The main advantage of trading using opposite Zhejiang Huatong and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Huatong 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.| Zhejiang Huatong vs. Sino Platinum Metals Co | Zhejiang Huatong vs. Shaanxi Meineng Clean | Zhejiang Huatong vs. Xizi Clean Energy | Zhejiang Huatong vs. Ningbo Fujia Industrial |
| Dow Jones vs. 51Talk Online Education | Dow Jones vs. World Houseware Limited | Dow Jones vs. Beauty Health Co | Dow Jones vs. Acme United |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |