Correlation Between Jiangsu Broadcasting and Dow Jones
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By analyzing existing cross correlation between Jiangsu Broadcasting Cable and Dow Jones Industrial, you can compare the effects of market volatilities on Jiangsu Broadcasting 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 Broadcasting with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Broadcasting and Dow Jones.
Diversification Opportunities for Jiangsu Broadcasting and Dow Jones
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiangsu and Dow is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Broadcasting Cable 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 Broadcasting 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 Broadcasting Cable 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 Broadcasting i.e., Jiangsu Broadcasting and Dow Jones go up and down completely randomly.
Pair Corralation between Jiangsu Broadcasting and Dow Jones
Assuming the 90 days trading horizon Jiangsu Broadcasting Cable is expected to generate 2.04 times more return on investment than Dow Jones. However, Jiangsu Broadcasting is 2.04 times more volatile than Dow Jones Industrial. It trades about 0.16 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.29 per unit of risk. If you would invest 334.00 in Jiangsu Broadcasting Cable on August 31, 2024 and sell it today you would earn a total of 22.00 from holding Jiangsu Broadcasting Cable or generate 6.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Broadcasting Cable vs. Dow Jones Industrial
Performance |
| Timeline |
Jiangsu Broadcasting and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Jiangsu Broadcasting Cable
Pair trading matchups for Jiangsu Broadcasting
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Jiangsu Broadcasting and Dow Jones
The main advantage of trading using opposite Jiangsu Broadcasting and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Broadcasting 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 Broadcasting vs. BYD Co Ltd | Jiangsu Broadcasting vs. Agricultural Bank of | Jiangsu Broadcasting vs. Industrial and Commercial | Jiangsu Broadcasting vs. China State Construction |
| Dow Jones vs. Aerofoam Metals | Dow Jones vs. ACG Metals Limited | Dow Jones vs. China Clean Energy | Dow Jones vs. Fast Retailing Co |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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