Correlation Between Techshine Electronics and Dow Jones
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By analyzing existing cross correlation between Techshine Electronics Co and Dow Jones Industrial, you can compare the effects of market volatilities on Techshine Electronics 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 Techshine Electronics with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Techshine Electronics and Dow Jones.
Diversification Opportunities for Techshine Electronics and Dow Jones
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Techshine and Dow is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Techshine Electronics 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 Techshine Electronics 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 Techshine Electronics 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 Techshine Electronics i.e., Techshine Electronics and Dow Jones go up and down completely randomly.
Pair Corralation between Techshine Electronics and Dow Jones
Assuming the 90 days trading horizon Techshine Electronics is expected to generate 36.56 times less return on investment than Dow Jones. In addition to that, Techshine Electronics is 2.88 times more volatile than Dow Jones Industrial. It trades about 0.0 of its total potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.21 per unit of volatility. If you would invest 4,237,436 in Dow Jones Industrial on August 25, 2024 and sell it today you would earn a total of 192,215 from holding Dow Jones Industrial or generate 4.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Techshine Electronics Co vs. Dow Jones Industrial
Performance |
| Timeline |
Techshine Electronics and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Techshine Electronics Co
Pair trading matchups for Techshine Electronics
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Techshine Electronics and Dow Jones
The main advantage of trading using opposite Techshine Electronics and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Techshine Electronics 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.| Techshine Electronics vs. Beijing Wandong Medical | Techshine Electronics vs. Nanjing Medlander Medical | Techshine Electronics vs. Cofoe Medical Technology | Techshine Electronics vs. GKHT Medical Technology |
| Dow Jones vs. Vistra Energy Corp | Dow Jones vs. Fluence Energy | Dow Jones vs. Old Republic International | Dow Jones vs. Empresa Distribuidora y |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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