Correlation Between Weihai Honglin and Dow Jones
Specify exactly 2 symbols:
By analyzing existing cross correlation between Weihai Honglin Electronic and Dow Jones Industrial, you can compare the effects of market volatilities on Weihai Honglin 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 Weihai Honglin with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Weihai Honglin and Dow Jones.
Diversification Opportunities for Weihai Honglin and Dow Jones
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Weihai and Dow is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Weihai Honglin Electronic 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 Weihai Honglin 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 Weihai Honglin Electronic 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 Weihai Honglin i.e., Weihai Honglin and Dow Jones go up and down completely randomly.
Pair Corralation between Weihai Honglin and Dow Jones
Assuming the 90 days trading horizon Weihai Honglin Electronic is expected to generate 6.05 times more return on investment than Dow Jones. However, Weihai Honglin is 6.05 times more volatile than Dow Jones Industrial. It trades about 0.19 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.29 per unit of risk. If you would invest 1,406 in Weihai Honglin Electronic on November 4, 2024 and sell it today you would earn a total of 201.00 from holding Weihai Honglin Electronic or generate 14.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 90.0% |
| Values | Daily Returns |
Weihai Honglin Electronic vs. Dow Jones Industrial
Performance |
| Timeline |
Weihai Honglin and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Weihai Honglin Electronic
Pair trading matchups for Weihai Honglin
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Weihai Honglin and Dow Jones
The main advantage of trading using opposite Weihai Honglin and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Weihai Honglin 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.| Weihai Honglin vs. Shenzhen Noposion Agrochemicals | Weihai Honglin vs. Guangdong Qunxing Toys | Weihai Honglin vs. Guangdong Jingyi Metal | Weihai Honglin vs. Harvest Fund Management |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |