Correlation Between Jiangxi JDL and Dow Jones
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By analyzing existing cross correlation between Jiangxi JDL Environmental and Dow Jones Industrial, you can compare the effects of market volatilities on Jiangxi JDL 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 Jiangxi JDL with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangxi JDL and Dow Jones.
Diversification Opportunities for Jiangxi JDL and Dow Jones
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiangxi and Dow is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Jiangxi JDL Environmental 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 Jiangxi JDL 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 Jiangxi JDL Environmental 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 Jiangxi JDL i.e., Jiangxi JDL and Dow Jones go up and down completely randomly.
Pair Corralation between Jiangxi JDL and Dow Jones
Assuming the 90 days trading horizon Jiangxi JDL Environmental is expected to under-perform the Dow Jones. In addition to that, Jiangxi JDL is 2.17 times more volatile than Dow Jones Industrial. It trades about -0.07 of its total potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.27 per unit of volatility. If you would invest 4,238,757 in Dow Jones Industrial on August 29, 2024 and sell it today you would earn a total of 247,274 from holding Dow Jones Industrial or generate 5.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangxi JDL Environmental vs. Dow Jones Industrial
Performance |
| Timeline |
Jiangxi JDL and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Jiangxi JDL Environmental
Pair trading matchups for Jiangxi JDL
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Jiangxi JDL and Dow Jones
The main advantage of trading using opposite Jiangxi JDL and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangxi JDL 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.| Jiangxi JDL vs. Kontour Medical Technology | Jiangxi JDL vs. Sino Medical Sciences | Jiangxi JDL vs. Arrow Home Group | Jiangxi JDL vs. Cofoe Medical Technology |
| Dow Jones vs. CECO Environmental Corp | Dow Jones vs. Western Acquisition Ventures | Dow Jones vs. Tyson Foods | Dow Jones vs. Inflection Point Acquisition |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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