Correlation Between Jiangxi Copper and Dow Jones
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By analyzing existing cross correlation between Jiangxi Copper Co and Dow Jones Industrial, you can compare the effects of market volatilities on Jiangxi Copper 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 Jiangxi Copper with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangxi Copper and Dow Jones.
Diversification Opportunities for Jiangxi Copper and Dow Jones
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jiangxi and Dow is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Jiangxi Copper 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 Jiangxi Copper 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 Jiangxi Copper 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 Jiangxi Copper i.e., Jiangxi Copper and Dow Jones go up and down completely randomly.
Pair Corralation between Jiangxi Copper and Dow Jones
Assuming the 90 days trading horizon Jiangxi Copper Co is expected to generate 2.01 times more return on investment than Dow Jones. However, Jiangxi Copper is 2.01 times more volatile than Dow Jones Industrial. It trades about 0.06 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about -0.25 per unit of risk. If you would invest 2,101 in Jiangxi Copper Co on November 29, 2024 and sell it today you would earn a total of 22.00 from holding Jiangxi Copper Co or generate 1.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 76.19% |
| Values | Daily Returns |
Jiangxi Copper Co vs. Dow Jones Industrial
Performance |
| Timeline |
Jiangxi Copper and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Jiangxi Copper Co
Pair trading matchups for Jiangxi Copper
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Jiangxi Copper and Dow Jones
The main advantage of trading using opposite Jiangxi Copper and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangxi Copper 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.| Jiangxi Copper vs. Guangdong TianYiMa Information | Jiangxi Copper vs. Innovative Medical Management | Jiangxi Copper vs. Longmaster Information Tech | Jiangxi Copper vs. CareRay Digital Medical |
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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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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