Correlation Between EmbedWay TechCorp and Dow Jones
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By analyzing existing cross correlation between EmbedWay TechCorp and Dow Jones Industrial, you can compare the effects of market volatilities on EmbedWay TechCorp 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 EmbedWay TechCorp with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of EmbedWay TechCorp and Dow Jones.
Diversification Opportunities for EmbedWay TechCorp and Dow Jones
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between EmbedWay and Dow is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding EmbedWay TechCorp 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 EmbedWay TechCorp 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 EmbedWay TechCorp 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 EmbedWay TechCorp i.e., EmbedWay TechCorp and Dow Jones go up and down completely randomly.
Pair Corralation between EmbedWay TechCorp and Dow Jones
Assuming the 90 days trading horizon EmbedWay TechCorp is expected to generate 4.38 times more return on investment than Dow Jones. However, EmbedWay TechCorp is 4.38 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 -0.18 per unit of risk. If you would invest 2,484 in EmbedWay TechCorp on October 17, 2024 and sell it today you would lose (89.00) from holding EmbedWay TechCorp or give up 3.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
EmbedWay TechCorp vs. Dow Jones Industrial
Performance |
| Timeline |
EmbedWay TechCorp and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
EmbedWay TechCorp
Pair trading matchups for EmbedWay TechCorp
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with EmbedWay TechCorp and Dow Jones
The main advantage of trading using opposite EmbedWay TechCorp and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EmbedWay TechCorp 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.| EmbedWay TechCorp vs. Haima Automobile Group | EmbedWay TechCorp vs. Tongyu Communication | EmbedWay TechCorp vs. Chengdu Spaceon Electronics | EmbedWay TechCorp vs. Shanghai CEO Environmental |
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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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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