Correlation Between Shanghai Laimu and Dow Jones
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shanghai Laimu Electronics and Dow Jones Industrial, you can compare the effects of market volatilities on Shanghai Laimu 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 Shanghai Laimu with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Laimu and Dow Jones.
Diversification Opportunities for Shanghai Laimu and Dow Jones
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shanghai and Dow is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Laimu Electronics 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 Shanghai Laimu 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 Shanghai Laimu Electronics 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 Shanghai Laimu i.e., Shanghai Laimu and Dow Jones go up and down completely randomly.
Pair Corralation between Shanghai Laimu and Dow Jones
Assuming the 90 days trading horizon Shanghai Laimu Electronics is expected to generate 5.27 times more return on investment than Dow Jones. However, Shanghai Laimu is 5.27 times more volatile than Dow Jones Industrial. It trades about 0.05 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.05 per unit of risk. If you would invest 806.00 in Shanghai Laimu Electronics on September 13, 2024 and sell it today you would earn a total of 18.00 from holding Shanghai Laimu Electronics or generate 2.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Shanghai Laimu Electronics vs. Dow Jones Industrial
Performance |
| Timeline |
Shanghai Laimu and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Shanghai Laimu Electronics
Pair trading matchups for Shanghai Laimu
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Shanghai Laimu and Dow Jones
The main advantage of trading using opposite Shanghai Laimu and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Laimu 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.| Shanghai Laimu vs. Jiujiang Shanshui Technology | Shanghai Laimu vs. Kuang Chi Technologies | Shanghai Laimu vs. Xiwang Foodstuffs Co | Shanghai Laimu vs. Guilin Seamild Foods |
| Dow Jones vs. ChampionX | Dow Jones vs. Highway Holdings Limited | Dow Jones vs. Westinghouse Air Brake | Dow Jones vs. Cementos Pacasmayo SAA |
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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |