Correlation Between Yantai North and Dow Jones
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By analyzing existing cross correlation between Yantai North Andre and Dow Jones Industrial, you can compare the effects of market volatilities on Yantai North 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 Yantai North with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yantai North and Dow Jones.
Diversification Opportunities for Yantai North and Dow Jones
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Yantai and Dow is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Yantai North Andre 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 Yantai North 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 Yantai North Andre 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 Yantai North i.e., Yantai North and Dow Jones go up and down completely randomly.
Pair Corralation between Yantai North and Dow Jones
Assuming the 90 days trading horizon Yantai North Andre is expected to generate 2.97 times more return on investment than Dow Jones. However, Yantai North is 2.97 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 0.26 per unit of risk. If you would invest 2,482 in Yantai North Andre on August 29, 2024 and sell it today you would earn a total of 287.00 from holding Yantai North Andre or generate 11.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yantai North Andre vs. Dow Jones Industrial
Performance |
| Timeline |
Yantai North and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Yantai North Andre
Pair trading matchups for Yantai North
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Yantai North and Dow Jones
The main advantage of trading using opposite Yantai North and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yantai North 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.| Yantai North vs. Mengtian Home Group | Yantai North vs. Xinjiang Tianrun Dairy | Yantai North vs. Guilin Seamild Foods | Yantai North vs. Nanxing Furniture Machinery |
| Dow Jones vs. Kaltura | Dow Jones vs. Artisan Partners Asset | Dow Jones vs. US Global Investors | Dow Jones vs. Analog Devices |
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.
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