Correlation Between Sunwoda Electronic and Dow Jones
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By analyzing existing cross correlation between Sunwoda Electronic and Dow Jones Industrial, you can compare the effects of market volatilities on Sunwoda 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 Sunwoda Electronic with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunwoda Electronic and Dow Jones.
Diversification Opportunities for Sunwoda Electronic and Dow Jones
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sunwoda and Dow is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Sunwoda Electronic 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 Sunwoda 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 Sunwoda Electronic 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 Sunwoda Electronic i.e., Sunwoda Electronic and Dow Jones go up and down completely randomly.
Pair Corralation between Sunwoda Electronic and Dow Jones
Assuming the 90 days trading horizon Sunwoda Electronic is expected to generate 4.62 times more return on investment than Dow Jones. However, Sunwoda Electronic is 4.62 times more volatile than Dow Jones Industrial. It trades about 0.06 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.07 per unit of risk. If you would invest 1,769 in Sunwoda Electronic on October 18, 2024 and sell it today you would earn a total of 333.00 from holding Sunwoda Electronic or generate 18.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 96.8% |
| Values | Daily Returns |
Sunwoda Electronic vs. Dow Jones Industrial
Performance |
| Timeline |
Sunwoda Electronic and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Sunwoda Electronic
Pair trading matchups for Sunwoda Electronic
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Sunwoda Electronic and Dow Jones
The main advantage of trading using opposite Sunwoda Electronic and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunwoda 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.| Sunwoda Electronic vs. Ping An Insurance | Sunwoda Electronic vs. Easyhome New Retail | Sunwoda Electronic vs. Postal Savings Bank | Sunwoda Electronic vs. Unisplendour Corp |
| Dow Jones vs. Neogen | Dow Jones vs. Alta Equipment Group | Dow Jones vs. Merit Medical Systems | Dow Jones vs. Summit Therapeutics 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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