Correlation Between SI TECH and Dow Jones
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By analyzing existing cross correlation between SI TECH Information Technology and Dow Jones Industrial, you can compare the effects of market volatilities on SI TECH 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 SI TECH with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of SI TECH and Dow Jones.
Diversification Opportunities for SI TECH and Dow Jones
Weak diversification
The 3 months correlation between 300608 and Dow is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding SI TECH Information Technology 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 SI TECH 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 SI TECH Information Technology 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 SI TECH i.e., SI TECH and Dow Jones go up and down completely randomly.
Pair Corralation between SI TECH and Dow Jones
Assuming the 90 days trading horizon SI TECH Information Technology is expected to under-perform the Dow Jones. In addition to that, SI TECH is 4.26 times more volatile than Dow Jones Industrial. It trades about -0.29 of its total potential returns per unit of risk. Dow Jones Industrial is currently generating about -0.18 per unit of volatility. If you would invest 4,371,748 in Dow Jones Industrial on October 17, 2024 and sell it today you would lose (142,036) from holding Dow Jones Industrial or give up 3.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
SI TECH Information Technology vs. Dow Jones Industrial
Performance |
| Timeline |
SI TECH and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
SI TECH Information Technology
Pair trading matchups for SI TECH
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with SI TECH and Dow Jones
The main advantage of trading using opposite SI TECH and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SI TECH 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.| SI TECH vs. China Mobile Limited | SI TECH vs. Songz Automobile Air | SI TECH vs. Ningbo Tech Bank Co | SI TECH vs. Haima Automobile Group |
| Dow Jones vs. JD Sports Fashion | Dow Jones vs. Titan Machinery | Dow Jones vs. Canlan Ice Sports | Dow Jones vs. Playa Hotels Resorts |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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