Correlation Between Autek China and Dow Jones
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By analyzing existing cross correlation between Autek China and Dow Jones Industrial, you can compare the effects of market volatilities on Autek China 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 Autek China with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Autek China and Dow Jones.
Diversification Opportunities for Autek China and Dow Jones
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Autek and Dow is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Autek China 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 Autek China 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 Autek China 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 Autek China i.e., Autek China and Dow Jones go up and down completely randomly.
Pair Corralation between Autek China and Dow Jones
Assuming the 90 days trading horizon Autek China is expected to under-perform the Dow Jones. In addition to that, Autek China is 3.88 times more volatile than Dow Jones Industrial. It trades about -0.02 of its total potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.09 per unit of volatility. If you would invest 3,320,222 in Dow Jones Industrial on September 5, 2024 and sell it today you would earn a total of 1,150,331 from holding Dow Jones Industrial or generate 34.65% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 96.36% |
Values | Daily Returns |
Autek China vs. Dow Jones Industrial
Performance |
Timeline |
Autek China and Dow Jones Volatility Contrast
Predicted Return Density |
Returns |
Autek China
Pair trading matchups for Autek China
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Autek China and Dow Jones
The main advantage of trading using opposite Autek China and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Autek China 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.Autek China vs. Kweichow Moutai Co | Autek China vs. Contemporary Amperex Technology | Autek China vs. G bits Network Technology | Autek China vs. Beijing Roborock Technology |
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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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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