Correlation Between Yonghui Superstores and Dow Jones
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By analyzing existing cross correlation between Yonghui Superstores Co and Dow Jones Industrial, you can compare the effects of market volatilities on Yonghui Superstores 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 Yonghui Superstores with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yonghui Superstores and Dow Jones.
Diversification Opportunities for Yonghui Superstores and Dow Jones
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Yonghui and Dow is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Yonghui Superstores Co 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 Yonghui Superstores 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 Yonghui Superstores Co 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 Yonghui Superstores i.e., Yonghui Superstores and Dow Jones go up and down completely randomly.
Pair Corralation between Yonghui Superstores and Dow Jones
Assuming the 90 days trading horizon Yonghui Superstores Co is expected to generate 3.99 times more return on investment than Dow Jones. However, Yonghui Superstores is 3.99 times more volatile than Dow Jones Industrial. It trades about 0.03 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.08 per unit of risk. If you would invest 387.00 in Yonghui Superstores Co on August 29, 2024 and sell it today you would earn a total of 66.00 from holding Yonghui Superstores Co or generate 17.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 96.17% |
| Values | Daily Returns |
Yonghui Superstores Co vs. Dow Jones Industrial
Performance |
| Timeline |
Yonghui Superstores and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Yonghui Superstores Co
Pair trading matchups for Yonghui Superstores
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Yonghui Superstores and Dow Jones
The main advantage of trading using opposite Yonghui Superstores and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yonghui Superstores 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.| Yonghui Superstores vs. PetroChina Co Ltd | Yonghui Superstores vs. China Mobile Limited | Yonghui Superstores vs. Ping An Insurance | Yonghui Superstores vs. China Petroleum Chemical |
| 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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