Correlation Between Guangdong Marubi and Dow Jones
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By analyzing existing cross correlation between Guangdong Marubi Biotechnology and Dow Jones Industrial, you can compare the effects of market volatilities on Guangdong Marubi 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 Guangdong Marubi with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Marubi and Dow Jones.
Diversification Opportunities for Guangdong Marubi and Dow Jones
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guangdong and Dow is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Marubi Biotechnology 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 Guangdong Marubi 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 Guangdong Marubi Biotechnology 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 Guangdong Marubi i.e., Guangdong Marubi and Dow Jones go up and down completely randomly.
Pair Corralation between Guangdong Marubi and Dow Jones
Assuming the 90 days trading horizon Guangdong Marubi Biotechnology is expected to generate 4.02 times more return on investment than Dow Jones. However, Guangdong Marubi is 4.02 times more volatile than Dow Jones Industrial. It trades about 0.18 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.15 per unit of risk. If you would invest 2,056 in Guangdong Marubi Biotechnology on August 25, 2024 and sell it today you would earn a total of 712.00 from holding Guangdong Marubi Biotechnology or generate 34.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 92.19% |
| Values | Daily Returns |
Guangdong Marubi Biotechnology vs. Dow Jones Industrial
Performance |
| Timeline |
Guangdong Marubi and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Guangdong Marubi Biotechnology
Pair trading matchups for Guangdong Marubi
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Guangdong Marubi and Dow Jones
The main advantage of trading using opposite Guangdong Marubi and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Marubi 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.| Guangdong Marubi vs. Guangdong Brandmax Marketing | Guangdong Marubi vs. AVCON Information Tech | Guangdong Marubi vs. Focus Media Information | Guangdong Marubi vs. Gansu Huangtai Wine marketing |
| Dow Jones vs. Vistra Energy Corp | Dow Jones vs. Fluence Energy | Dow Jones vs. Old Republic International | Dow Jones vs. Empresa Distribuidora y |
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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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