Correlation Between Thinkingdom Media and Dow Jones
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By analyzing existing cross correlation between Thinkingdom Media Group and Dow Jones Industrial, you can compare the effects of market volatilities on Thinkingdom Media 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 Thinkingdom Media with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thinkingdom Media and Dow Jones.
Diversification Opportunities for Thinkingdom Media and Dow Jones
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Thinkingdom and Dow is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Thinkingdom Media 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 Thinkingdom Media 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 Thinkingdom Media 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 Thinkingdom Media i.e., Thinkingdom Media and Dow Jones go up and down completely randomly.
Pair Corralation between Thinkingdom Media and Dow Jones
Assuming the 90 days trading horizon Thinkingdom Media Group is expected to generate 3.63 times more return on investment than Dow Jones. However, Thinkingdom Media is 3.63 times more volatile than Dow Jones Industrial. It trades about 0.39 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.38 per unit of risk. If you would invest 1,708 in Thinkingdom Media Group on September 3, 2024 and sell it today you would earn a total of 528.00 from holding Thinkingdom Media Group or generate 30.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Thinkingdom Media Group vs. Dow Jones Industrial
Performance |
| Timeline |
Thinkingdom Media and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Thinkingdom Media Group
Pair trading matchups for Thinkingdom Media
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Thinkingdom Media and Dow Jones
The main advantage of trading using opposite Thinkingdom Media and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thinkingdom Media 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.| Thinkingdom Media vs. Gansu Jiu Steel | Thinkingdom Media vs. Ming Yang Smart | Thinkingdom Media vs. Aba Chemicals Corp | Thinkingdom Media vs. Loctek Ergonomic Technology |
| Dow Jones vs. Eastern Co | Dow Jones vs. Uber Technologies | Dow Jones vs. AKITA Drilling | Dow Jones vs. Chemours 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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