Correlation Between Sino Wealth and Dow Jones
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By analyzing existing cross correlation between Sino Wealth Electronic and Dow Jones Industrial, you can compare the effects of market volatilities on Sino Wealth 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 Sino Wealth with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sino Wealth and Dow Jones.
Diversification Opportunities for Sino Wealth and Dow Jones
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sino and Dow is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Sino Wealth 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 Sino Wealth 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 Sino Wealth 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 Sino Wealth i.e., Sino Wealth and Dow Jones go up and down completely randomly.
Pair Corralation between Sino Wealth and Dow Jones
Assuming the 90 days trading horizon Sino Wealth Electronic is expected to under-perform the Dow Jones. In addition to that, Sino Wealth is 3.7 times more volatile than Dow Jones Industrial. It trades about -0.07 of its total potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.27 per unit of volatility. If you would invest 4,238,757 in Dow Jones Industrial on August 29, 2024 and sell it today you would earn a total of 247,274 from holding Dow Jones Industrial or generate 5.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sino Wealth Electronic vs. Dow Jones Industrial
Performance |
| Timeline |
Sino Wealth and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Sino Wealth Electronic
Pair trading matchups for Sino Wealth
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Sino Wealth and Dow Jones
The main advantage of trading using opposite Sino Wealth and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sino Wealth 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.| Sino Wealth vs. Lutian Machinery Co | Sino Wealth vs. China Longyuan Power | Sino Wealth vs. Changshu Tongrun Auto | Sino Wealth vs. PetroChina Co Ltd |
| 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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