Correlation Between Xinke Material and Dow Jones
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By analyzing existing cross correlation between Xinke Material and Dow Jones Industrial, you can compare the effects of market volatilities on Xinke Material 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 Xinke Material with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinke Material and Dow Jones.
Diversification Opportunities for Xinke Material and Dow Jones
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Xinke and Dow is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Xinke Material 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 Xinke Material 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 Xinke Material 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 Xinke Material i.e., Xinke Material and Dow Jones go up and down completely randomly.
Pair Corralation between Xinke Material and Dow Jones
Assuming the 90 days trading horizon Xinke Material is expected to generate 8.58 times more return on investment than Dow Jones. However, Xinke Material is 8.58 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 0.17 per unit of risk. If you would invest 371.00 in Xinke Material on October 23, 2024 and sell it today you would earn a total of 10.00 from holding Xinke Material or generate 2.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Xinke Material vs. Dow Jones Industrial
Performance |
| Timeline |
Xinke Material and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Xinke Material
Pair trading matchups for Xinke Material
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Xinke Material and Dow Jones
The main advantage of trading using opposite Xinke Material and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinke Material 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.| Xinke Material vs. Qingdao Foods Co | Xinke Material vs. Hefei Metalforming Mach | Xinke Material vs. Shenyang Huitian Thermal | Xinke Material vs. Eastroc Beverage Group |
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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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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