Correlation Between Winner Medical and Dow Jones
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By analyzing existing cross correlation between Winner Medical Co and Dow Jones Industrial, you can compare the effects of market volatilities on Winner Medical 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 Winner Medical with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Winner Medical and Dow Jones.
Diversification Opportunities for Winner Medical and Dow Jones
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Winner and Dow is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Winner Medical Co 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 Winner Medical 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 Winner Medical Co 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 Winner Medical i.e., Winner Medical and Dow Jones go up and down completely randomly.
Pair Corralation between Winner Medical and Dow Jones
Assuming the 90 days trading horizon Winner Medical Co is expected to generate 2.45 times more return on investment than Dow Jones. However, Winner Medical is 2.45 times more volatile than Dow Jones Industrial. It trades about 0.27 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.21 per unit of risk. If you would invest 2,956 in Winner Medical Co on August 25, 2024 and sell it today you would earn a total of 434.00 from holding Winner Medical Co or generate 14.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Winner Medical Co vs. Dow Jones Industrial
Performance |
| Timeline |
Winner Medical and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Winner Medical Co
Pair trading matchups for Winner Medical
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Winner Medical and Dow Jones
The main advantage of trading using opposite Winner Medical and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Winner Medical 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.| Winner Medical vs. China State Construction | Winner Medical vs. Poly Real Estate | Winner Medical vs. China Vanke Co | Winner Medical vs. China Merchants Shekou |
| Dow Jones vs. Sphere Entertainment Co | Dow Jones vs. Perseus Mining Limited | Dow Jones vs. Titan Machinery | Dow Jones vs. Simon Property Group |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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