Correlation Between Focused Photonics and Dow Jones
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By analyzing existing cross correlation between Focused Photonics Hangzhou and Dow Jones Industrial, you can compare the effects of market volatilities on Focused Photonics 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 Focused Photonics with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Focused Photonics and Dow Jones.
Diversification Opportunities for Focused Photonics and Dow Jones
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Focused and Dow is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Focused Photonics Hangzhou 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 Focused Photonics 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 Focused Photonics Hangzhou 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 Focused Photonics i.e., Focused Photonics and Dow Jones go up and down completely randomly.
Pair Corralation between Focused Photonics and Dow Jones
Assuming the 90 days trading horizon Focused Photonics Hangzhou is expected to generate 4.45 times more return on investment than Dow Jones. However, Focused Photonics is 4.45 times more volatile than Dow Jones Industrial. It trades about 0.17 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 1,535 in Focused Photonics Hangzhou on October 22, 2024 and sell it today you would earn a total of 171.00 from holding Focused Photonics Hangzhou or generate 11.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
Focused Photonics Hangzhou vs. Dow Jones Industrial
Performance |
| Timeline |
Focused Photonics and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Focused Photonics Hangzhou
Pair trading matchups for Focused Photonics
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Focused Photonics and Dow Jones
The main advantage of trading using opposite Focused Photonics and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Focused Photonics 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.| Focused Photonics vs. Haima Automobile Group | Focused Photonics vs. Zhongshan Public Utilities | Focused Photonics vs. Chongqing Sulian Plastic | Focused Photonics vs. Anhui Jianghuai Automobile |
| Dow Jones vs. Grupo Televisa SAB | Dow Jones vs. NiSource | Dow Jones vs. Kinetik Holdings | Dow Jones vs. Empresa Distribuidora y |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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