Correlation Between Cathay Bloomberg and Cathay Dow
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By analyzing existing cross correlation between Cathay Bloomberg Barclays and Cathay Dow Jones, you can compare the effects of market volatilities on Cathay Bloomberg and Cathay Dow 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 Cathay Bloomberg with a short position of Cathay Dow. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cathay Bloomberg and Cathay Dow.
Diversification Opportunities for Cathay Bloomberg and Cathay Dow
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Cathay and Cathay is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Cathay Bloomberg Barclays and Cathay Dow Jones in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cathay Dow Jones and Cathay Bloomberg 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 Cathay Bloomberg Barclays are associated (or correlated) with Cathay Dow. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cathay Dow Jones has no effect on the direction of Cathay Bloomberg i.e., Cathay Bloomberg and Cathay Dow go up and down completely randomly.
Pair Corralation between Cathay Bloomberg and Cathay Dow
Assuming the 90 days trading horizon Cathay Bloomberg Barclays is expected to under-perform the Cathay Dow. But the etf apears to be less risky and, when comparing its historical volatility, Cathay Bloomberg Barclays is 1.13 times less risky than Cathay Dow. The etf trades about 0.0 of its potential returns per unit of risk. The Cathay Dow Jones is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 1,510 in Cathay Dow Jones on September 2, 2024 and sell it today you would earn a total of 115.00 from holding Cathay Dow Jones or generate 7.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cathay Bloomberg Barclays vs. Cathay Dow Jones
Performance |
| Timeline |
| Cathay Bloomberg Barclays |
| Cathay Dow Jones |
Cathay Bloomberg and Cathay Dow Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cathay Bloomberg and Cathay Dow
The main advantage of trading using opposite Cathay Bloomberg and Cathay Dow positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cathay Bloomberg position performs unexpectedly, Cathay Dow 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 Cathay Dow will offset losses from the drop in Cathay Dow's long position.| Cathay Bloomberg vs. Yuanta Daily CSI | Cathay Bloomberg vs. Fubon FTSE Vietnam | Cathay Bloomberg vs. Paradigm SP GSCI |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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