Correlation Between Zhongyin Babi and Dow Jones
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By analyzing existing cross correlation between Zhongyin Babi Food and Dow Jones Industrial, you can compare the effects of market volatilities on Zhongyin Babi 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 Zhongyin Babi with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongyin Babi and Dow Jones.
Diversification Opportunities for Zhongyin Babi and Dow Jones
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zhongyin and Dow is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Zhongyin Babi Food 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 Zhongyin Babi 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 Zhongyin Babi Food 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 Zhongyin Babi i.e., Zhongyin Babi and Dow Jones go up and down completely randomly.
Pair Corralation between Zhongyin Babi and Dow Jones
Assuming the 90 days trading horizon Zhongyin Babi Food is expected to under-perform the Dow Jones. In addition to that, Zhongyin Babi is 3.01 times more volatile than Dow Jones Industrial. It trades about -0.05 of its total potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.08 per unit of volatility. If you would invest 3,394,710 in Dow Jones Industrial on August 25, 2024 and sell it today you would earn a total of 1,034,941 from holding Dow Jones Industrial or generate 30.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 96.18% |
| Values | Daily Returns |
Zhongyin Babi Food vs. Dow Jones Industrial
Performance |
| Timeline |
Zhongyin Babi and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Zhongyin Babi Food
Pair trading matchups for Zhongyin Babi
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Zhongyin Babi and Dow Jones
The main advantage of trading using opposite Zhongyin Babi and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongyin Babi 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.| Zhongyin Babi vs. China Petroleum Chemical | Zhongyin Babi vs. PetroChina Co Ltd | Zhongyin Babi vs. China State Construction | Zhongyin Babi vs. China Railway Group |
| 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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