Correlation Between Longmaster Information and Dow Jones
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By analyzing existing cross correlation between Longmaster Information Tech and Dow Jones Industrial, you can compare the effects of market volatilities on Longmaster Information 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 Longmaster Information with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Longmaster Information and Dow Jones.
Diversification Opportunities for Longmaster Information and Dow Jones
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Longmaster and Dow is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Longmaster Information Tech 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 Longmaster Information 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 Longmaster Information Tech 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 Longmaster Information i.e., Longmaster Information and Dow Jones go up and down completely randomly.
Pair Corralation between Longmaster Information and Dow Jones
Assuming the 90 days trading horizon Longmaster Information Tech is expected to generate 5.74 times more return on investment than Dow Jones. However, Longmaster Information is 5.74 times more volatile than Dow Jones Industrial. It trades about 0.18 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.18 per unit of risk. If you would invest 1,062 in Longmaster Information Tech on August 28, 2024 and sell it today you would earn a total of 525.00 from holding Longmaster Information Tech or generate 49.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 90.63% |
| Values | Daily Returns |
Longmaster Information Tech vs. Dow Jones Industrial
Performance |
| Timeline |
Longmaster Information and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Longmaster Information Tech
Pair trading matchups for Longmaster Information
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Longmaster Information and Dow Jones
The main advantage of trading using opposite Longmaster Information and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Longmaster Information 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.| Longmaster Information vs. Ming Yang Smart | Longmaster Information vs. 159681 | Longmaster Information vs. 159005 | Longmaster Information vs. Loctek Ergonomic Technology |
| Dow Jones vs. CECO Environmental Corp | Dow Jones vs. Western Acquisition Ventures | Dow Jones vs. Tyson Foods | Dow Jones vs. Inflection Point Acquisition |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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