Correlation Between Bingshan Refrigeration and Dow Jones
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By analyzing existing cross correlation between Bingshan Refrigeration and and Dow Jones Industrial, you can compare the effects of market volatilities on Bingshan Refrigeration 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 Bingshan Refrigeration with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bingshan Refrigeration and Dow Jones.
Diversification Opportunities for Bingshan Refrigeration and Dow Jones
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Bingshan and Dow is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Bingshan Refrigeration and 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 Bingshan Refrigeration 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 Bingshan Refrigeration and 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 Bingshan Refrigeration i.e., Bingshan Refrigeration and Dow Jones go up and down completely randomly.
Pair Corralation between Bingshan Refrigeration and Dow Jones
Assuming the 90 days trading horizon Bingshan Refrigeration and is expected to generate 3.35 times more return on investment than Dow Jones. However, Bingshan Refrigeration is 3.35 times more volatile than Dow Jones Industrial. It trades about 0.1 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.12 per unit of risk. If you would invest 140.00 in Bingshan Refrigeration and on November 2, 2024 and sell it today you would earn a total of 33.00 from holding Bingshan Refrigeration and or generate 23.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 94.23% |
| Values | Daily Returns |
Bingshan Refrigeration and vs. Dow Jones Industrial
Performance |
| Timeline |
Bingshan Refrigeration and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Bingshan Refrigeration and
Pair trading matchups for Bingshan Refrigeration
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Bingshan Refrigeration and Dow Jones
The main advantage of trading using opposite Bingshan Refrigeration and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bingshan Refrigeration 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.| Bingshan Refrigeration vs. Jinhui Mining Co | Bingshan Refrigeration vs. Shengda Mining Co | Bingshan Refrigeration vs. Zhengzhou Coal Mining | Bingshan Refrigeration vs. Shenzhen Bioeasy Biotechnology |
| Dow Jones vs. Boston Properties | Dow Jones vs. Suntory Beverage Food | Dow Jones vs. Envista Holdings Corp | Dow Jones vs. Fevertree Drinks Plc |
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 Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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