Correlation Between Kunwu Jiuding and Dow Jones
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By analyzing existing cross correlation between Kunwu Jiuding Investment and Dow Jones Industrial, you can compare the effects of market volatilities on Kunwu Jiuding 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 Kunwu Jiuding with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kunwu Jiuding and Dow Jones.
Diversification Opportunities for Kunwu Jiuding and Dow Jones
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kunwu and Dow is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Kunwu Jiuding Investment 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 Kunwu Jiuding 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 Kunwu Jiuding Investment 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 Kunwu Jiuding i.e., Kunwu Jiuding and Dow Jones go up and down completely randomly.
Pair Corralation between Kunwu Jiuding and Dow Jones
Assuming the 90 days trading horizon Kunwu Jiuding Investment is expected to under-perform the Dow Jones. In addition to that, Kunwu Jiuding is 3.71 times more volatile than Dow Jones Industrial. It trades about -0.12 of its total potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.24 per unit of volatility. If you would invest 4,211,440 in Dow Jones Industrial on August 26, 2024 and sell it today you would earn a total of 218,211 from holding Dow Jones Industrial or generate 5.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kunwu Jiuding Investment vs. Dow Jones Industrial
Performance |
| Timeline |
Kunwu Jiuding and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Kunwu Jiuding Investment
Pair trading matchups for Kunwu Jiuding
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Kunwu Jiuding and Dow Jones
The main advantage of trading using opposite Kunwu Jiuding and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kunwu Jiuding 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.| Kunwu Jiuding vs. New China Life | Kunwu Jiuding vs. Ming Yang Smart | Kunwu Jiuding vs. 159681 | Kunwu Jiuding vs. 159005 |
| 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 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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