Correlation Between Shijiazhuang Tonhe and Dow Jones
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By analyzing existing cross correlation between Shijiazhuang Tonhe Electronics and Dow Jones Industrial, you can compare the effects of market volatilities on Shijiazhuang Tonhe 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 Shijiazhuang Tonhe with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shijiazhuang Tonhe and Dow Jones.
Diversification Opportunities for Shijiazhuang Tonhe and Dow Jones
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shijiazhuang and Dow is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Shijiazhuang Tonhe Electronics 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 Shijiazhuang Tonhe 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 Shijiazhuang Tonhe Electronics 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 Shijiazhuang Tonhe i.e., Shijiazhuang Tonhe and Dow Jones go up and down completely randomly.
Pair Corralation between Shijiazhuang Tonhe and Dow Jones
Assuming the 90 days trading horizon Shijiazhuang Tonhe Electronics is expected to generate 4.52 times more return on investment than Dow Jones. However, Shijiazhuang Tonhe is 4.52 times more volatile than Dow Jones Industrial. It trades about 0.01 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about -0.01 per unit of risk. If you would invest 1,680 in Shijiazhuang Tonhe Electronics on September 12, 2024 and sell it today you would lose (2.00) from holding Shijiazhuang Tonhe Electronics or give up 0.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 91.3% |
| Values | Daily Returns |
Shijiazhuang Tonhe Electronics vs. Dow Jones Industrial
Performance |
| Timeline |
Shijiazhuang Tonhe and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Shijiazhuang Tonhe Electronics
Pair trading matchups for Shijiazhuang Tonhe
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Shijiazhuang Tonhe and Dow Jones
The main advantage of trading using opposite Shijiazhuang Tonhe and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shijiazhuang Tonhe 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.| Shijiazhuang Tonhe vs. Agricultural Bank of | Shijiazhuang Tonhe vs. Industrial and Commercial | Shijiazhuang Tonhe vs. Bank of China | Shijiazhuang Tonhe vs. PetroChina Co Ltd |
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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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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