Correlation Between Xander International and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Xander International and Dow Jones at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Xander International and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xander International and Dow Jones Industrial, you can compare the effects of market volatilities on Xander International 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 Xander International with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xander International and Dow Jones.
Diversification Opportunities for Xander International and Dow Jones
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Xander and Dow is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Xander International 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 Xander International 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 Xander International 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 Xander International i.e., Xander International and Dow Jones go up and down completely randomly.
Pair Corralation between Xander International and Dow Jones
Assuming the 90 days trading horizon Xander International is expected to under-perform the Dow Jones. In addition to that, Xander International is 3.26 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 0.08 per unit of volatility. If you would invest 3,359,634 in Dow Jones Industrial on August 27, 2024 and sell it today you would earn a total of 1,070,017 from holding Dow Jones Industrial or generate 31.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 96.77% |
| Values | Daily Returns |
Xander International vs. Dow Jones Industrial
Performance |
| Timeline |
Xander International and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Xander International
Pair trading matchups for Xander International
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Xander International and Dow Jones
The main advantage of trading using opposite Xander International and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xander International 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.| Xander International vs. Wha Yu Industrial | Xander International vs. Chialin Precision Industrial | Xander International vs. Fu Burg Industrial | Xander International vs. Meiloon Industrial Co |
| Dow Jones vs. Meiwu Technology Co | Dow Jones vs. 17 Education Technology | Dow Jones vs. 51Talk Online Education | Dow Jones vs. Afya |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |