Correlation Between Huaneng Lancang and Dow Jones
Specify exactly 2 symbols:
By analyzing existing cross correlation between Huaneng Lancang River and Dow Jones Industrial, you can compare the effects of market volatilities on Huaneng Lancang 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 Huaneng Lancang with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huaneng Lancang and Dow Jones.
Diversification Opportunities for Huaneng Lancang and Dow Jones
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Huaneng and Dow is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Huaneng Lancang River 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 Huaneng Lancang 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 Huaneng Lancang River 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 Huaneng Lancang i.e., Huaneng Lancang and Dow Jones go up and down completely randomly.
Pair Corralation between Huaneng Lancang and Dow Jones
Assuming the 90 days trading horizon Huaneng Lancang River is expected to under-perform the Dow Jones. In addition to that, Huaneng Lancang is 1.18 times more volatile than Dow Jones Industrial. It trades about -0.34 of its total potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.26 per unit of volatility. If you would invest 4,238,757 in Dow Jones Industrial on August 29, 2024 and sell it today you would earn a total of 247,274 from holding Dow Jones Industrial or generate 5.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Huaneng Lancang River vs. Dow Jones Industrial
Performance |
| Timeline |
Huaneng Lancang and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Huaneng Lancang River
Pair trading matchups for Huaneng Lancang
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Huaneng Lancang and Dow Jones
The main advantage of trading using opposite Huaneng Lancang and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huaneng Lancang 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.| Huaneng Lancang vs. Aofu Environmental Technology | Huaneng Lancang vs. Tongxing Environmental Protection | Huaneng Lancang vs. City Development Environment | Huaneng Lancang vs. Hainan Haiqi Transportation |
| Dow Jones vs. Kaltura | Dow Jones vs. Artisan Partners Asset | Dow Jones vs. US Global Investors | Dow Jones vs. Analog Devices |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |