Correlation Between Nantong Jiangshan and Dow Jones
Specify exactly 2 symbols:
By analyzing existing cross correlation between Nantong Jiangshan Agrochemical and Dow Jones Industrial, you can compare the effects of market volatilities on Nantong Jiangshan 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 Nantong Jiangshan with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nantong Jiangshan and Dow Jones.
Diversification Opportunities for Nantong Jiangshan and Dow Jones
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Nantong and Dow is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Nantong Jiangshan Agrochemical 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 Nantong Jiangshan 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 Nantong Jiangshan Agrochemical 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 Nantong Jiangshan i.e., Nantong Jiangshan and Dow Jones go up and down completely randomly.
Pair Corralation between Nantong Jiangshan and Dow Jones
Assuming the 90 days trading horizon Nantong Jiangshan is expected to generate 1.89 times less return on investment than Dow Jones. In addition to that, Nantong Jiangshan is 2.35 times more volatile than Dow Jones Industrial. It trades about 0.06 of its total potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.27 per unit of volatility. If you would invest 4,238,757 in Dow Jones Industrial on August 28, 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 Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nantong Jiangshan Agrochemical vs. Dow Jones Industrial
Performance |
| Timeline |
Nantong Jiangshan and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Nantong Jiangshan Agrochemical
Pair trading matchups for Nantong Jiangshan
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Nantong Jiangshan and Dow Jones
The main advantage of trading using opposite Nantong Jiangshan and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nantong Jiangshan 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.| Nantong Jiangshan vs. Zijin Mining Group | Nantong Jiangshan vs. Wanhua Chemical Group | Nantong Jiangshan vs. Baoshan Iron Steel | Nantong Jiangshan vs. Shandong Gold Mining |
| Dow Jones vs. CECO Environmental Corp | Dow Jones vs. Western Acquisition Ventures | Dow Jones vs. Tyson Foods | Dow Jones vs. Inflection Point Acquisition |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |