Correlation Between Shanghai Jinfeng and Dow Jones
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By analyzing existing cross correlation between Shanghai Jinfeng Wine and Dow Jones Industrial, you can compare the effects of market volatilities on Shanghai Jinfeng 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 Shanghai Jinfeng with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Jinfeng and Dow Jones.
Diversification Opportunities for Shanghai Jinfeng and Dow Jones
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Shanghai and Dow is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Jinfeng Wine 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 Shanghai Jinfeng 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 Shanghai Jinfeng Wine 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 Shanghai Jinfeng i.e., Shanghai Jinfeng and Dow Jones go up and down completely randomly.
Pair Corralation between Shanghai Jinfeng and Dow Jones
Assuming the 90 days trading horizon Shanghai Jinfeng Wine is expected to under-perform the Dow Jones. In addition to that, Shanghai Jinfeng is 3.6 times more volatile than Dow Jones Industrial. It trades about -0.2 of its total potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.33 per unit of volatility. If you would invest 4,239,227 in Dow Jones Industrial on November 3, 2024 and sell it today you would earn a total of 215,239 from holding Dow Jones Industrial or generate 5.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 90.48% |
| Values | Daily Returns |
Shanghai Jinfeng Wine vs. Dow Jones Industrial
Performance |
| Timeline |
Shanghai Jinfeng and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Shanghai Jinfeng Wine
Pair trading matchups for Shanghai Jinfeng
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Shanghai Jinfeng and Dow Jones
The main advantage of trading using opposite Shanghai Jinfeng and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Jinfeng 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.| Shanghai Jinfeng vs. Jiangsu GDK Biotechnology | Shanghai Jinfeng vs. Chengdu Xingrong Investment | Shanghai Jinfeng vs. Sichuan Hebang Biotechnology | Shanghai Jinfeng vs. Nuode Investment Co |
| Dow Jones vs. Rambler Metals and | Dow Jones vs. Nicola Mining | Dow Jones vs. Old Dominion Freight | Dow Jones vs. United Guardian |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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