Correlation Between XiaMen HongXin and Dow Jones
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By analyzing existing cross correlation between XiaMen HongXin Electron tech and Dow Jones Industrial, you can compare the effects of market volatilities on XiaMen HongXin 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 XiaMen HongXin with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of XiaMen HongXin and Dow Jones.
Diversification Opportunities for XiaMen HongXin and Dow Jones
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between XiaMen and Dow is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding XiaMen HongXin Electron tech 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 XiaMen HongXin 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 XiaMen HongXin Electron tech 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 XiaMen HongXin i.e., XiaMen HongXin and Dow Jones go up and down completely randomly.
Pair Corralation between XiaMen HongXin and Dow Jones
Assuming the 90 days trading horizon XiaMen HongXin Electron tech is expected to generate 5.29 times more return on investment than Dow Jones. However, XiaMen HongXin is 5.29 times more volatile than Dow Jones Industrial. It trades about 0.05 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.07 per unit of risk. If you would invest 1,595 in XiaMen HongXin Electron tech on October 13, 2024 and sell it today you would earn a total of 346.00 from holding XiaMen HongXin Electron tech or generate 21.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.61% |
| Values | Daily Returns |
XiaMen HongXin Electron tech vs. Dow Jones Industrial
Performance |
| Timeline |
XiaMen HongXin and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
XiaMen HongXin Electron tech
Pair trading matchups for XiaMen HongXin
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with XiaMen HongXin and Dow Jones
The main advantage of trading using opposite XiaMen HongXin and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XiaMen HongXin 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.| XiaMen HongXin vs. Biwin Storage Technology | XiaMen HongXin vs. PetroChina Co Ltd | XiaMen HongXin vs. Industrial and Commercial | XiaMen HongXin vs. China Construction Bank |
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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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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