Correlation Between Hualan Group and Dow Jones
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By analyzing existing cross correlation between Hualan Group Co and Dow Jones Industrial, you can compare the effects of market volatilities on Hualan Group 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 Hualan Group with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hualan Group and Dow Jones.
Diversification Opportunities for Hualan Group and Dow Jones
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Hualan and Dow is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Hualan Group 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 Hualan Group 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 Hualan Group 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 Hualan Group i.e., Hualan Group and Dow Jones go up and down completely randomly.
Pair Corralation between Hualan Group and Dow Jones
Assuming the 90 days trading horizon Hualan Group Co is expected to generate 5.96 times more return on investment than Dow Jones. However, Hualan Group is 5.96 times more volatile than Dow Jones Industrial. It trades about 0.18 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.15 per unit of risk. If you would invest 736.00 in Hualan Group Co on November 3, 2024 and sell it today you would earn a total of 963.00 from holding Hualan Group Co or generate 130.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.2% |
| Values | Daily Returns |
Hualan Group Co vs. Dow Jones Industrial
Performance |
| Timeline |
Hualan Group and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Hualan Group Co
Pair trading matchups for Hualan Group
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Hualan Group and Dow Jones
The main advantage of trading using opposite Hualan Group and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hualan Group 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.| Hualan Group vs. HeNan Splendor Science | Hualan Group vs. Hainan Haiqi Transportation | Hualan Group vs. Shuhua Sports Co | Hualan Group vs. Shenzhen Urban Transport |
| Dow Jones vs. Cincinnati Financial | Dow Jones vs. Kellanova | Dow Jones vs. Acme United | Dow Jones vs. Procter Gamble |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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