Correlation Between Tangshan Port and Dow Jones
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By analyzing existing cross correlation between Tangshan Port Group and Dow Jones Industrial, you can compare the effects of market volatilities on Tangshan Port 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 Tangshan Port with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tangshan Port and Dow Jones.
Diversification Opportunities for Tangshan Port and Dow Jones
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Tangshan and Dow is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Tangshan Port Group 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 Tangshan Port 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 Tangshan Port Group 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 Tangshan Port i.e., Tangshan Port and Dow Jones go up and down completely randomly.
Pair Corralation between Tangshan Port and Dow Jones
Assuming the 90 days trading horizon Tangshan Port is expected to generate 7.84 times less return on investment than Dow Jones. In addition to that, Tangshan Port is 2.47 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 0.42 per unit of volatility. If you would invest 4,239,227 in Dow Jones Industrial on November 2, 2024 and sell it today you would earn a total of 248,986 from holding Dow Jones Industrial or generate 5.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tangshan Port Group vs. Dow Jones Industrial
Performance |
| Timeline |
Tangshan Port and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Tangshan Port Group
Pair trading matchups for Tangshan Port
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Tangshan Port and Dow Jones
The main advantage of trading using opposite Tangshan Port and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tangshan Port 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.| Tangshan Port vs. Baoding Dongli Machinery | Tangshan Port vs. Ningbo Construction Co | Tangshan Port vs. Anhui Huilong Agricultural | Tangshan Port vs. Tederic Machinery Co |
| Dow Jones vs. Boston Properties | Dow Jones vs. Suntory Beverage Food | Dow Jones vs. Envista Holdings Corp | Dow Jones vs. Fevertree Drinks Plc |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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