Correlation Between Shengtak New and Dow Jones
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By analyzing existing cross correlation between Shengtak New Material and Dow Jones Industrial, you can compare the effects of market volatilities on Shengtak New 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 Shengtak New with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shengtak New and Dow Jones.
Diversification Opportunities for Shengtak New and Dow Jones
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Shengtak and Dow is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Shengtak New Material 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 Shengtak New 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 Shengtak New Material 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 Shengtak New i.e., Shengtak New and Dow Jones go up and down completely randomly.
Pair Corralation between Shengtak New and Dow Jones
Assuming the 90 days trading horizon Shengtak New Material is expected to generate 2.15 times more return on investment than Dow Jones. However, Shengtak New is 2.15 times more volatile than Dow Jones Industrial. It trades about -0.04 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about -0.28 per unit of risk. If you would invest 3,207 in Shengtak New Material on September 29, 2024 and sell it today you would lose (50.00) from holding Shengtak New Material or give up 1.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Shengtak New Material vs. Dow Jones Industrial
Performance |
| Timeline |
Shengtak New and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Shengtak New Material
Pair trading matchups for Shengtak New
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Shengtak New and Dow Jones
The main advantage of trading using opposite Shengtak New and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shengtak New 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.| Shengtak New vs. Hubei Geoway Investment | Shengtak New vs. Jiujiang Shanshui Technology | Shengtak New vs. Changchun UP Optotech | Shengtak New vs. Tieling Newcity Investment |
| Dow Jones vs. Eldorado Gold Corp | Dow Jones vs. Flexible Solutions International | Dow Jones vs. Olympic Steel | Dow Jones vs. Valhi Inc |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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