Correlation Between Jiangsu Leadmicro and Dow Jones
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By analyzing existing cross correlation between Jiangsu Leadmicro Nano and Dow Jones Industrial, you can compare the effects of market volatilities on Jiangsu Leadmicro 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 Jiangsu Leadmicro with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Leadmicro and Dow Jones.
Diversification Opportunities for Jiangsu Leadmicro and Dow Jones
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiangsu and Dow is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Leadmicro Nano 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 Jiangsu Leadmicro 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 Jiangsu Leadmicro Nano 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 Jiangsu Leadmicro i.e., Jiangsu Leadmicro and Dow Jones go up and down completely randomly.
Pair Corralation between Jiangsu Leadmicro and Dow Jones
Assuming the 90 days trading horizon Jiangsu Leadmicro Nano is expected to generate 5.64 times more return on investment than Dow Jones. However, Jiangsu Leadmicro is 5.64 times more volatile than Dow Jones Industrial. It trades about 0.02 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.08 per unit of risk. If you would invest 2,736 in Jiangsu Leadmicro Nano on September 2, 2024 and sell it today you would earn a total of 245.00 from holding Jiangsu Leadmicro Nano or generate 8.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 94.56% |
| Values | Daily Returns |
Jiangsu Leadmicro Nano vs. Dow Jones Industrial
Performance |
| Timeline |
Jiangsu Leadmicro and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Jiangsu Leadmicro Nano
Pair trading matchups for Jiangsu Leadmicro
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Jiangsu Leadmicro and Dow Jones
The main advantage of trading using opposite Jiangsu Leadmicro and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Leadmicro 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.| Jiangsu Leadmicro vs. New China Life | Jiangsu Leadmicro vs. Ming Yang Smart | Jiangsu Leadmicro vs. 159681 | Jiangsu Leadmicro vs. 159005 |
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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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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