Correlation Between Fujian Wanchen and Dow Jones
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By analyzing existing cross correlation between Fujian Wanchen Biotechnology and Dow Jones Industrial, you can compare the effects of market volatilities on Fujian Wanchen 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 Fujian Wanchen with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Wanchen and Dow Jones.
Diversification Opportunities for Fujian Wanchen and Dow Jones
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Fujian and Dow is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Wanchen Biotechnology 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 Fujian Wanchen 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 Fujian Wanchen Biotechnology 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 Fujian Wanchen i.e., Fujian Wanchen and Dow Jones go up and down completely randomly.
Pair Corralation between Fujian Wanchen and Dow Jones
Assuming the 90 days trading horizon Fujian Wanchen Biotechnology is expected to generate 3.73 times more return on investment than Dow Jones. However, Fujian Wanchen is 3.73 times more volatile than Dow Jones Industrial. It trades about -0.06 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 8,180 in Fujian Wanchen Biotechnology on October 12, 2024 and sell it today you would lose (352.00) from holding Fujian Wanchen Biotechnology or give up 4.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Fujian Wanchen Biotechnology vs. Dow Jones Industrial
Performance |
| Timeline |
Fujian Wanchen and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Fujian Wanchen Biotechnology
Pair trading matchups for Fujian Wanchen
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Fujian Wanchen and Dow Jones
The main advantage of trading using opposite Fujian Wanchen and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Wanchen 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.| Fujian Wanchen vs. Xiwang Foodstuffs Co | Fujian Wanchen vs. HaiXin Foods Co | Fujian Wanchen vs. Eastroc Beverage Group | Fujian Wanchen vs. Gan Yuan Foods |
| Dow Jones vs. Lululemon Athletica | Dow Jones vs. Vistra Energy Corp | Dow Jones vs. The Gap, | Dow Jones vs. Pool Corporation |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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