Correlation Between Sobute New and Dow Jones
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By analyzing existing cross correlation between Sobute New Materials and Dow Jones Industrial, you can compare the effects of market volatilities on Sobute New 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 Sobute New with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sobute New and Dow Jones.
Diversification Opportunities for Sobute New and Dow Jones
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Sobute and Dow is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Sobute New Materials 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 Sobute New 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 Sobute New Materials 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 Sobute New i.e., Sobute New and Dow Jones go up and down completely randomly.
Pair Corralation between Sobute New and Dow Jones
Assuming the 90 days trading horizon Sobute New is expected to generate 1.15 times less return on investment than Dow Jones. In addition to that, Sobute New is 2.92 times more volatile than Dow Jones Industrial. It trades about 0.04 of its total potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.12 per unit of volatility. If you would invest 4,093,693 in Dow Jones Industrial on November 2, 2024 and sell it today you would earn a total of 394,520 from holding Dow Jones Industrial or generate 9.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 94.23% |
| Values | Daily Returns |
Sobute New Materials vs. Dow Jones Industrial
Performance |
| Timeline |
Sobute New and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Sobute New Materials
Pair trading matchups for Sobute New
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Sobute New and Dow Jones
The main advantage of trading using opposite Sobute New and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sobute New 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.| Sobute New vs. Zijin Mining Group | Sobute New vs. Wanhua Chemical Group | Sobute New vs. Baoshan Iron Steel | Sobute New vs. Shandong Gold Mining |
| 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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