Correlation Between Beijing Topnew and Dow Jones
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By analyzing existing cross correlation between Beijing Topnew Info and Dow Jones Industrial, you can compare the effects of market volatilities on Beijing Topnew 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 Beijing Topnew with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Topnew and Dow Jones.
Diversification Opportunities for Beijing Topnew and Dow Jones
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Beijing and Dow is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Topnew Info 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 Beijing Topnew 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 Beijing Topnew Info 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 Beijing Topnew i.e., Beijing Topnew and Dow Jones go up and down completely randomly.
Pair Corralation between Beijing Topnew and Dow Jones
Assuming the 90 days trading horizon Beijing Topnew Info is expected to generate 5.94 times more return on investment than Dow Jones. However, Beijing Topnew is 5.94 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 0.08 per unit of risk. If you would invest 2,425 in Beijing Topnew Info on August 30, 2024 and sell it today you would earn a total of 1,013 from holding Beijing Topnew Info or generate 41.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 96.17% |
| Values | Daily Returns |
Beijing Topnew Info vs. Dow Jones Industrial
Performance |
| Timeline |
Beijing Topnew and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Beijing Topnew Info
Pair trading matchups for Beijing Topnew
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Beijing Topnew and Dow Jones
The main advantage of trading using opposite Beijing Topnew and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Topnew 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.| Beijing Topnew vs. Kweichow Moutai Co | Beijing Topnew vs. Contemporary Amperex Technology | Beijing Topnew vs. G bits Network Technology | Beijing Topnew vs. BYD Co Ltd |
| Dow Jones vs. Skillful Craftsman Education | Dow Jones vs. Acco Brands | Dow Jones vs. Cracker Barrel Old | Dow Jones vs. Coursera |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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