Correlation Between Jiangsu Zhongtian and Dow Jones
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By analyzing existing cross correlation between Jiangsu Zhongtian Technology and Dow Jones Industrial, you can compare the effects of market volatilities on Jiangsu Zhongtian 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 Jiangsu Zhongtian with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Zhongtian and Dow Jones.
Diversification Opportunities for Jiangsu Zhongtian and Dow Jones
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jiangsu and Dow is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Zhongtian Technology 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 Jiangsu Zhongtian 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 Jiangsu Zhongtian Technology 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 Jiangsu Zhongtian i.e., Jiangsu Zhongtian and Dow Jones go up and down completely randomly.
Pair Corralation between Jiangsu Zhongtian and Dow Jones
Assuming the 90 days trading horizon Jiangsu Zhongtian is expected to generate 2.49 times less return on investment than Dow Jones. In addition to that, Jiangsu Zhongtian is 3.45 times more volatile than Dow Jones Industrial. It trades about 0.01 of its total potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.12 per unit of volatility. If you would invest 3,343,335 in Dow Jones Industrial on September 26, 2024 and sell it today you would earn a total of 986,368 from holding Dow Jones Industrial or generate 29.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.82% |
| Values | Daily Returns |
Jiangsu Zhongtian Technology vs. Dow Jones Industrial
Performance |
| Timeline |
Jiangsu Zhongtian and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Jiangsu Zhongtian Technology
Pair trading matchups for Jiangsu Zhongtian
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Jiangsu Zhongtian and Dow Jones
The main advantage of trading using opposite Jiangsu Zhongtian and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Zhongtian 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.| Jiangsu Zhongtian vs. Kweichow Moutai Co | Jiangsu Zhongtian vs. Contemporary Amperex Technology | Jiangsu Zhongtian vs. G bits Network Technology | Jiangsu Zhongtian vs. BYD Co Ltd |
| Dow Jones vs. Sabre Corpo | Dow Jones vs. Cannae Holdings | Dow Jones vs. Pekin Life Insurance | Dow Jones vs. Supercom |
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 Valuation module to check real value of public entities based on technical and fundamental data.
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