Correlation Between Huaibei Mining and Dow Jones
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By analyzing existing cross correlation between Huaibei Mining Holdings and Dow Jones Industrial, you can compare the effects of market volatilities on Huaibei Mining 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 Huaibei Mining with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huaibei Mining and Dow Jones.
Diversification Opportunities for Huaibei Mining and Dow Jones
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Huaibei and Dow is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Huaibei Mining Holdings 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 Huaibei Mining 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 Huaibei Mining Holdings 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 Huaibei Mining i.e., Huaibei Mining and Dow Jones go up and down completely randomly.
Pair Corralation between Huaibei Mining and Dow Jones
Assuming the 90 days trading horizon Huaibei Mining is expected to generate 1.24 times less return on investment than Dow Jones. In addition to that, Huaibei Mining is 2.84 times more volatile than Dow Jones Industrial. It trades about 0.02 of its total potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.08 per unit of volatility. If you would invest 3,347,646 in Dow Jones Industrial on August 30, 2024 and sell it today you would earn a total of 1,124,560 from holding Dow Jones Industrial or generate 33.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 96.16% |
| Values | Daily Returns |
Huaibei Mining Holdings vs. Dow Jones Industrial
Performance |
| Timeline |
Huaibei Mining and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Huaibei Mining Holdings
Pair trading matchups for Huaibei Mining
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Huaibei Mining and Dow Jones
The main advantage of trading using opposite Huaibei Mining and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huaibei Mining 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.| Huaibei Mining vs. Tsingtao Brewery Co | Huaibei Mining vs. Anhui Jianghuai Automobile | Huaibei Mining vs. China Sports Industry | Huaibei Mining vs. Everdisplay Optronics Shanghai |
| Dow Jones vs. Kaltura | Dow Jones vs. Artisan Partners Asset | Dow Jones vs. US Global Investors | Dow Jones vs. Analog Devices |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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