Correlation Between Renxin New and Dow Jones
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By analyzing existing cross correlation between Renxin New Material and Dow Jones Industrial, you can compare the effects of market volatilities on Renxin New 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 Renxin New with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Renxin New and Dow Jones.
Diversification Opportunities for Renxin New and Dow Jones
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Renxin and Dow is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Renxin New Material 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 Renxin New 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 Renxin New Material 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 Renxin New i.e., Renxin New and Dow Jones go up and down completely randomly.
Pair Corralation between Renxin New and Dow Jones
Assuming the 90 days trading horizon Renxin New is expected to generate 4.03 times less return on investment than Dow Jones. In addition to that, Renxin New is 2.63 times more volatile than Dow Jones Industrial. It trades about 0.02 of its total potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.17 per unit of volatility. If you would invest 4,290,695 in Dow Jones Industrial on October 23, 2024 and sell it today you would earn a total of 111,886 from holding Dow Jones Industrial or generate 2.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Renxin New Material vs. Dow Jones Industrial
Performance |
| Timeline |
Renxin New and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Renxin New Material
Pair trading matchups for Renxin New
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Renxin New and Dow Jones
The main advantage of trading using opposite Renxin New and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Renxin New 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.| Renxin New vs. Anhui Jianghuai Automobile | Renxin New vs. Ningbo Tip Rubber | Renxin New vs. Shanghai Phichem Material | Renxin New vs. Kangxin New Materials |
| Dow Jones vs. Grupo Televisa SAB | Dow Jones vs. NiSource | Dow Jones vs. Kinetik Holdings | 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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