Correlation Between Zhonghang Electronic and Dow Jones
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By analyzing existing cross correlation between Zhonghang Electronic Measuring and Dow Jones Industrial, you can compare the effects of market volatilities on Zhonghang Electronic 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 Zhonghang Electronic with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhonghang Electronic and Dow Jones.
Diversification Opportunities for Zhonghang Electronic and Dow Jones
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Zhonghang and Dow is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Zhonghang Electronic Measuring 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 Zhonghang Electronic 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 Zhonghang Electronic Measuring 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 Zhonghang Electronic i.e., Zhonghang Electronic and Dow Jones go up and down completely randomly.
Pair Corralation between Zhonghang Electronic and Dow Jones
Assuming the 90 days trading horizon Zhonghang Electronic Measuring is expected to generate 5.8 times more return on investment than Dow Jones. However, Zhonghang Electronic is 5.8 times more volatile than Dow Jones Industrial. It trades about 0.01 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about -0.21 per unit of risk. If you would invest 6,871 in Zhonghang Electronic Measuring on October 12, 2024 and sell it today you would lose (65.00) from holding Zhonghang Electronic Measuring or give up 0.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhonghang Electronic Measuring vs. Dow Jones Industrial
Performance |
| Timeline |
Zhonghang Electronic and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Zhonghang Electronic Measuring
Pair trading matchups for Zhonghang Electronic
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Zhonghang Electronic and Dow Jones
The main advantage of trading using opposite Zhonghang Electronic and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhonghang Electronic 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.| Zhonghang Electronic vs. Jiaozuo Wanfang Aluminum | Zhonghang Electronic vs. Zijin Mining Group | Zhonghang Electronic vs. Jiangsu Yanghe Brewery | Zhonghang Electronic vs. Chongqing Shunbo Aluminum |
| Dow Jones vs. Toro | Dow Jones vs. Foot Locker | Dow Jones vs. Abercrombie Fitch | Dow Jones vs. 51Talk Online Education |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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