Correlation Between Hunan Airbluer and Dow Jones
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By analyzing existing cross correlation between Hunan Airbluer Environmental and Dow Jones Industrial, you can compare the effects of market volatilities on Hunan Airbluer 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 Hunan Airbluer with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hunan Airbluer and Dow Jones.
Diversification Opportunities for Hunan Airbluer and Dow Jones
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hunan and Dow is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Hunan Airbluer Environmental 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 Hunan Airbluer 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 Hunan Airbluer Environmental 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 Hunan Airbluer i.e., Hunan Airbluer and Dow Jones go up and down completely randomly.
Pair Corralation between Hunan Airbluer and Dow Jones
Assuming the 90 days trading horizon Hunan Airbluer Environmental is expected to generate 6.18 times more return on investment than Dow Jones. However, Hunan Airbluer is 6.18 times more volatile than Dow Jones Industrial. It trades about 0.33 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.14 per unit of risk. If you would invest 2,669 in Hunan Airbluer Environmental on August 25, 2024 and sell it today you would earn a total of 2,246 from holding Hunan Airbluer Environmental or generate 84.15% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 88.89% |
Values | Daily Returns |
Hunan Airbluer Environmental vs. Dow Jones Industrial
Performance |
Timeline |
Hunan Airbluer and Dow Jones Volatility Contrast
Predicted Return Density |
Returns |
Hunan Airbluer Environmental
Pair trading matchups for Hunan Airbluer
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Hunan Airbluer and Dow Jones
The main advantage of trading using opposite Hunan Airbluer and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hunan Airbluer 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.Hunan Airbluer vs. China Reform Health | Hunan Airbluer vs. Qtone Education Group | Hunan Airbluer vs. By health | Hunan Airbluer vs. Sanbo Hospital Management |
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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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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