Correlation Between Hithink RoyalFlush and Dow Jones
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By analyzing existing cross correlation between Hithink RoyalFlush Info and Dow Jones Industrial, you can compare the effects of market volatilities on Hithink RoyalFlush 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 Hithink RoyalFlush with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hithink RoyalFlush and Dow Jones.
Diversification Opportunities for Hithink RoyalFlush and Dow Jones
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hithink and Dow is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Hithink RoyalFlush Info 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 Hithink RoyalFlush 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 Hithink RoyalFlush Info 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 Hithink RoyalFlush i.e., Hithink RoyalFlush and Dow Jones go up and down completely randomly.
Pair Corralation between Hithink RoyalFlush and Dow Jones
Assuming the 90 days trading horizon Hithink RoyalFlush Info is expected to generate 6.66 times more return on investment than Dow Jones. However, Hithink RoyalFlush is 6.66 times more volatile than Dow Jones Industrial. It trades about 0.12 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.1 per unit of risk. If you would invest 11,558 in Hithink RoyalFlush Info on August 29, 2024 and sell it today you would earn a total of 16,863 from holding Hithink RoyalFlush Info or generate 145.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 93.78% |
| Values | Daily Returns |
Hithink RoyalFlush Info vs. Dow Jones Industrial
Performance |
| Timeline |
Hithink RoyalFlush and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Hithink RoyalFlush Info
Pair trading matchups for Hithink RoyalFlush
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Hithink RoyalFlush and Dow Jones
The main advantage of trading using opposite Hithink RoyalFlush and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hithink RoyalFlush 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.| Hithink RoyalFlush vs. Xinjiang Baodi Mining | Hithink RoyalFlush vs. Lander Sports Development | Hithink RoyalFlush vs. Ye Chiu Metal | Hithink RoyalFlush vs. Inly Media Co |
| Dow Jones vs. Kaltura | Dow Jones vs. Artisan Partners Asset | Dow Jones vs. US Global Investors | Dow Jones vs. Analog Devices |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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