Correlation Between Huali Industrial and Dow Jones
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By analyzing existing cross correlation between Huali Industrial Group and Dow Jones Industrial, you can compare the effects of market volatilities on Huali Industrial 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 Huali Industrial with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huali Industrial and Dow Jones.
Diversification Opportunities for Huali Industrial and Dow Jones
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Huali and Dow is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Huali Industrial Group 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 Huali Industrial 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 Huali Industrial Group 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 Huali Industrial i.e., Huali Industrial and Dow Jones go up and down completely randomly.
Pair Corralation between Huali Industrial and Dow Jones
Assuming the 90 days trading horizon Huali Industrial Group is expected to generate 2.5 times more return on investment than Dow Jones. However, Huali Industrial is 2.5 times more volatile than Dow Jones Industrial. It trades about 0.19 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.37 per unit of risk. If you would invest 6,679 in Huali Industrial Group on September 1, 2024 and sell it today you would earn a total of 702.00 from holding Huali Industrial Group or generate 10.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 91.3% |
| Values | Daily Returns |
Huali Industrial Group vs. Dow Jones Industrial
Performance |
| Timeline |
Huali Industrial and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Huali Industrial Group
Pair trading matchups for Huali Industrial
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Huali Industrial and Dow Jones
The main advantage of trading using opposite Huali Industrial and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huali Industrial 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.| Huali Industrial vs. Shaanxi Broadcast TV | Huali Industrial vs. Tonghua Grape Wine | Huali Industrial vs. Chongqing Road Bridge | Huali Industrial vs. Hubeiyichang Transportation Group |
| Dow Jones vs. Catalyst Pharmaceuticals | Dow Jones vs. Sphere Entertainment Co | Dow Jones vs. National CineMedia | Dow Jones vs. Mink Therapeutics |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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