Correlation Between Suwen Electric and Dow Jones
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By analyzing existing cross correlation between Suwen Electric Energy and Dow Jones Industrial, you can compare the effects of market volatilities on Suwen Electric 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 Suwen Electric with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suwen Electric and Dow Jones.
Diversification Opportunities for Suwen Electric and Dow Jones
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Suwen and Dow is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Suwen Electric Energy 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 Suwen Electric 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 Suwen Electric Energy 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 Suwen Electric i.e., Suwen Electric and Dow Jones go up and down completely randomly.
Pair Corralation between Suwen Electric and Dow Jones
Assuming the 90 days trading horizon Suwen Electric Energy is expected to under-perform the Dow Jones. In addition to that, Suwen Electric is 3.51 times more volatile than Dow Jones Industrial. It trades about -0.08 of its total potential returns per unit of risk. Dow Jones Industrial is currently generating about -0.01 per unit of volatility. If you would invest 4,429,313 in Dow Jones Industrial on September 12, 2024 and sell it today you would lose (4,530) from holding Dow Jones Industrial or give up 0.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 91.3% |
| Values | Daily Returns |
Suwen Electric Energy vs. Dow Jones Industrial
Performance |
| Timeline |
Suwen Electric and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Suwen Electric Energy
Pair trading matchups for Suwen Electric
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Suwen Electric and Dow Jones
The main advantage of trading using opposite Suwen Electric and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suwen Electric 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.| Suwen Electric vs. Xiangyu Medical Co | Suwen Electric vs. Blue Sail Medical | Suwen Electric vs. Guangzhou Boji Medical | Suwen Electric vs. Hengkang Medical Group |
| Dow Jones vs. Aeye Inc | Dow Jones vs. Gentex | Dow Jones vs. Marine Products | Dow Jones vs. CarsalesCom Ltd ADR |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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