Correlation Between Hubei Xingfa and Dow Jones
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By analyzing existing cross correlation between Hubei Xingfa Chemicals and Dow Jones Industrial, you can compare the effects of market volatilities on Hubei Xingfa 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 Hubei Xingfa with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hubei Xingfa and Dow Jones.
Diversification Opportunities for Hubei Xingfa and Dow Jones
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Hubei and Dow is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Hubei Xingfa Chemicals 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 Hubei Xingfa 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 Hubei Xingfa Chemicals 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 Hubei Xingfa i.e., Hubei Xingfa and Dow Jones go up and down completely randomly.
Pair Corralation between Hubei Xingfa and Dow Jones
Assuming the 90 days trading horizon Hubei Xingfa Chemicals is expected to generate 3.16 times more return on investment than Dow Jones. However, Hubei Xingfa is 3.16 times more volatile than Dow Jones Industrial. It trades about 0.05 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.08 per unit of risk. If you would invest 1,738 in Hubei Xingfa Chemicals on October 20, 2024 and sell it today you would earn a total of 465.00 from holding Hubei Xingfa Chemicals or generate 26.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.58% |
| Values | Daily Returns |
Hubei Xingfa Chemicals vs. Dow Jones Industrial
Performance |
| Timeline |
Hubei Xingfa and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Hubei Xingfa Chemicals
Pair trading matchups for Hubei Xingfa
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Hubei Xingfa and Dow Jones
The main advantage of trading using opposite Hubei Xingfa and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hubei Xingfa 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.| Hubei Xingfa vs. Luolai Home Textile | Hubei Xingfa vs. Nanjing OLO Home | Hubei Xingfa vs. Anhui Huaren Health | Hubei Xingfa vs. CSSC Offshore Marine |
| Dow Jones vs. Aluminum of | Dow Jones vs. Adtalem Global Education | Dow Jones vs. East Africa Metals | Dow Jones vs. Western Copper and |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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