Correlation Between Weihai Guangwei and Dow Jones
Specify exactly 2 symbols:
By analyzing existing cross correlation between Weihai Guangwei Composites and Dow Jones Industrial, you can compare the effects of market volatilities on Weihai Guangwei 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 Weihai Guangwei with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Weihai Guangwei and Dow Jones.
Diversification Opportunities for Weihai Guangwei and Dow Jones
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Weihai and Dow is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Weihai Guangwei Composites 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 Weihai Guangwei 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 Weihai Guangwei Composites 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 Weihai Guangwei i.e., Weihai Guangwei and Dow Jones go up and down completely randomly.
Pair Corralation between Weihai Guangwei and Dow Jones
Assuming the 90 days trading horizon Weihai Guangwei Composites is expected to generate 2.54 times more return on investment than Dow Jones. However, Weihai Guangwei is 2.54 times more volatile than Dow Jones Industrial. It trades about 0.13 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about -0.16 per unit of risk. If you would invest 3,073 in Weihai Guangwei Composites on December 1, 2024 and sell it today you would earn a total of 131.00 from holding Weihai Guangwei Composites or generate 4.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.48% |
| Values | Daily Returns |
Weihai Guangwei Composites vs. Dow Jones Industrial
Performance |
| Timeline |
Weihai Guangwei and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Weihai Guangwei Composites
Pair trading matchups for Weihai Guangwei
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Weihai Guangwei and Dow Jones
The main advantage of trading using opposite Weihai Guangwei and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Weihai Guangwei 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.| Weihai Guangwei vs. Western Mining Co | Weihai Guangwei vs. Guizhou Chanhen Chemical | Weihai Guangwei vs. Lianhe Chemical Technology | Weihai Guangwei vs. HeBei Jinniu Chemical |
| Dow Jones vs. Cannae Holdings | Dow Jones vs. Fidus Investment Corp | Dow Jones vs. SEI Investments | Dow Jones vs. Cracker Barrel Old |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |