Correlation Between Guangzhou Hangxin and Dow Jones
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By analyzing existing cross correlation between Guangzhou Hangxin Aviation and Dow Jones Industrial, you can compare the effects of market volatilities on Guangzhou Hangxin 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 Guangzhou Hangxin with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Hangxin and Dow Jones.
Diversification Opportunities for Guangzhou Hangxin and Dow Jones
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Guangzhou and Dow is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Hangxin Aviation 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 Guangzhou Hangxin 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 Guangzhou Hangxin Aviation 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 Guangzhou Hangxin i.e., Guangzhou Hangxin and Dow Jones go up and down completely randomly.
Pair Corralation between Guangzhou Hangxin and Dow Jones
Assuming the 90 days trading horizon Guangzhou Hangxin Aviation is expected to under-perform the Dow Jones. In addition to that, Guangzhou Hangxin is 4.94 times more volatile than Dow Jones Industrial. It trades about -0.08 of its total potential returns per unit of risk. Dow Jones Industrial is currently generating about -0.02 per unit of volatility. If you would invest 4,387,035 in Dow Jones Industrial on October 22, 2024 and sell it today you would lose (38,252) from holding Dow Jones Industrial or give up 0.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Guangzhou Hangxin Aviation vs. Dow Jones Industrial
Performance |
| Timeline |
Guangzhou Hangxin and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Guangzhou Hangxin Aviation
Pair trading matchups for Guangzhou Hangxin
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Guangzhou Hangxin and Dow Jones
The main advantage of trading using opposite Guangzhou Hangxin and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Hangxin 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.| Guangzhou Hangxin vs. Shenzhen MYS Environmental | Guangzhou Hangxin vs. AVIC Fund Management | Guangzhou Hangxin vs. Haoxiangni Jujube Co | Guangzhou Hangxin vs. Shenzhen Bingchuan Network |
| Dow Jones vs. Nasdaq Inc | Dow Jones vs. Summit Materials | Dow Jones vs. Vulcan Materials | Dow Jones vs. Celsius Holdings |
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 CEOs Directory module to screen CEOs from public companies around the world.
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