Correlation Between Zhejiang Tongxing and Dow Jones
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By analyzing existing cross correlation between Zhejiang Tongxing Technology and Dow Jones Industrial, you can compare the effects of market volatilities on Zhejiang Tongxing 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 Zhejiang Tongxing with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Tongxing and Dow Jones.
Diversification Opportunities for Zhejiang Tongxing and Dow Jones
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zhejiang and Dow is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Tongxing Technology 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 Zhejiang Tongxing 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 Zhejiang Tongxing Technology 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 Zhejiang Tongxing i.e., Zhejiang Tongxing and Dow Jones go up and down completely randomly.
Pair Corralation between Zhejiang Tongxing and Dow Jones
Assuming the 90 days trading horizon Zhejiang Tongxing Technology is expected to generate 5.51 times more return on investment than Dow Jones. However, Zhejiang Tongxing is 5.51 times more volatile than Dow Jones Industrial. It trades about 0.01 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about -0.01 per unit of risk. If you would invest 2,976 in Zhejiang Tongxing Technology on September 12, 2024 and sell it today you would lose (10.00) from holding Zhejiang Tongxing Technology or give up 0.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 91.3% |
| Values | Daily Returns |
Zhejiang Tongxing Technology vs. Dow Jones Industrial
Performance |
| Timeline |
Zhejiang Tongxing and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Zhejiang Tongxing Technology
Pair trading matchups for Zhejiang Tongxing
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Zhejiang Tongxing and Dow Jones
The main advantage of trading using opposite Zhejiang Tongxing and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Tongxing 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.| Zhejiang Tongxing vs. Sunny Loan Top | Zhejiang Tongxing vs. Sportsoul Co Ltd | Zhejiang Tongxing vs. Metro Investment Development | Zhejiang Tongxing vs. Zhejiang Construction Investment |
| 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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