Correlation Between Guangdong TianYiMa and Dow Jones
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By analyzing existing cross correlation between Guangdong TianYiMa Information and Dow Jones Industrial, you can compare the effects of market volatilities on Guangdong TianYiMa 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 Guangdong TianYiMa with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong TianYiMa and Dow Jones.
Diversification Opportunities for Guangdong TianYiMa and Dow Jones
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Guangdong and Dow is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong TianYiMa Information 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 Guangdong TianYiMa 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 Guangdong TianYiMa Information 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 Guangdong TianYiMa i.e., Guangdong TianYiMa and Dow Jones go up and down completely randomly.
Pair Corralation between Guangdong TianYiMa and Dow Jones
Assuming the 90 days trading horizon Guangdong TianYiMa Information is expected to under-perform the Dow Jones. In addition to that, Guangdong TianYiMa is 4.2 times more volatile than Dow Jones Industrial. It trades about -0.07 of its total potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.36 per unit of volatility. If you would invest 4,257,373 in Dow Jones Industrial on October 30, 2024 and sell it today you would earn a total of 213,985 from holding Dow Jones Industrial or generate 5.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 90.0% |
| Values | Daily Returns |
Guangdong TianYiMa Information vs. Dow Jones Industrial
Performance |
| Timeline |
Guangdong TianYiMa and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Guangdong TianYiMa Information
Pair trading matchups for Guangdong TianYiMa
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Guangdong TianYiMa and Dow Jones
The main advantage of trading using opposite Guangdong TianYiMa and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong TianYiMa 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.| Guangdong TianYiMa vs. Namchow Food Group | Guangdong TianYiMa vs. Youyou Foods Co | Guangdong TianYiMa vs. HaiXin Foods Co | Guangdong TianYiMa vs. CITIC Metal Co |
| Dow Jones vs. Snap On | Dow Jones vs. Hillman Solutions Corp | Dow Jones vs. RBC Bearings Incorporated | Dow Jones vs. Rocky Brands |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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