Correlation Between Guangdong Sanhe and Dow Jones
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By analyzing existing cross correlation between Guangdong Sanhe Pile and Dow Jones Industrial, you can compare the effects of market volatilities on Guangdong Sanhe 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 Guangdong Sanhe with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Sanhe and Dow Jones.
Diversification Opportunities for Guangdong Sanhe and Dow Jones
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guangdong and Dow is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Sanhe Pile 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 Guangdong Sanhe 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 Guangdong Sanhe Pile 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 Guangdong Sanhe i.e., Guangdong Sanhe and Dow Jones go up and down completely randomly.
Pair Corralation between Guangdong Sanhe and Dow Jones
Assuming the 90 days trading horizon Guangdong Sanhe Pile is expected to generate 5.26 times more return on investment than Dow Jones. However, Guangdong Sanhe is 5.26 times more volatile than Dow Jones Industrial. It trades about 0.21 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.0 per unit of risk. If you would invest 645.00 in Guangdong Sanhe Pile on September 13, 2024 and sell it today you would earn a total of 88.00 from holding Guangdong Sanhe Pile or generate 13.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Guangdong Sanhe Pile vs. Dow Jones Industrial
Performance |
| Timeline |
Guangdong Sanhe and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Guangdong Sanhe Pile
Pair trading matchups for Guangdong Sanhe
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Guangdong Sanhe and Dow Jones
The main advantage of trading using opposite Guangdong Sanhe and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Sanhe 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.| Guangdong Sanhe vs. Zijin Mining Group | Guangdong Sanhe vs. Wanhua Chemical Group | Guangdong Sanhe vs. Baoshan Iron Steel | Guangdong Sanhe vs. Shandong Gold Mining |
| 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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