Correlation Between Yunnan Chihong and Dow Jones
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By analyzing existing cross correlation between Yunnan Chihong ZincGermanium and Dow Jones Industrial, you can compare the effects of market volatilities on Yunnan Chihong 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 Yunnan Chihong with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yunnan Chihong and Dow Jones.
Diversification Opportunities for Yunnan Chihong and Dow Jones
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Yunnan and Dow is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Yunnan Chihong ZincGermanium 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 Yunnan Chihong 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 Yunnan Chihong ZincGermanium 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 Yunnan Chihong i.e., Yunnan Chihong and Dow Jones go up and down completely randomly.
Pair Corralation between Yunnan Chihong and Dow Jones
Assuming the 90 days trading horizon Yunnan Chihong ZincGermanium is expected to generate 1.53 times more return on investment than Dow Jones. However, Yunnan Chihong is 1.53 times more volatile than Dow Jones Industrial. It trades about -0.08 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 557.00 in Yunnan Chihong ZincGermanium on November 29, 2024 and sell it today you would lose (7.00) from holding Yunnan Chihong ZincGermanium or give up 1.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 76.19% |
| Values | Daily Returns |
Yunnan Chihong ZincGermanium vs. Dow Jones Industrial
Performance |
| Timeline |
Yunnan Chihong and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Yunnan Chihong ZincGermanium
Pair trading matchups for Yunnan Chihong
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Yunnan Chihong and Dow Jones
The main advantage of trading using opposite Yunnan Chihong and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yunnan Chihong 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.| Yunnan Chihong vs. Techshine Electronics Co | Yunnan Chihong vs. Qingdao Hi Tech Moulds | Yunnan Chihong vs. Eastern Communications Co | Yunnan Chihong vs. Aurora Optoelectronics Co |
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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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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