Correlation Between Sixxon Tech and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Sixxon Tech and Dow Jones at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Sixxon Tech and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sixxon Tech Co and Dow Jones Industrial, you can compare the effects of market volatilities on Sixxon Tech 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 Sixxon Tech with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sixxon Tech and Dow Jones.
Diversification Opportunities for Sixxon Tech and Dow Jones
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Sixxon and Dow is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Sixxon Tech 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 Sixxon Tech 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 Sixxon Tech 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 Sixxon Tech i.e., Sixxon Tech and Dow Jones go up and down completely randomly.
Pair Corralation between Sixxon Tech and Dow Jones
Assuming the 90 days trading horizon Sixxon Tech Co is expected to under-perform the Dow Jones. In addition to that, Sixxon Tech is 5.08 times more volatile than Dow Jones Industrial. It trades about -0.19 of its total potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.22 per unit of volatility. If you would invest 4,238,757 in Dow Jones Industrial on August 27, 2024 and sell it today you would earn a total of 190,894 from holding Dow Jones Industrial or generate 4.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sixxon Tech Co vs. Dow Jones Industrial
Performance |
| Timeline |
Sixxon Tech and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Sixxon Tech Co
Pair trading matchups for Sixxon Tech
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Sixxon Tech and Dow Jones
The main advantage of trading using opposite Sixxon Tech and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sixxon Tech 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.| Sixxon Tech vs. Gloria Material Technology | Sixxon Tech vs. Zhen Ding Technology | Sixxon Tech vs. Sitronix Technology Corp | Sixxon Tech vs. Asmedia Technology |
| Dow Jones vs. Meiwu Technology Co | Dow Jones vs. 17 Education Technology | Dow Jones vs. 51Talk Online Education | Dow Jones vs. Afya |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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